20 August 2008
Total Rs. of Depreciable assets is 38,78,740.58 as on 01.04.2007(includes land, building, plant & machinery & furniture & fixture, this all purchase on different dates from 2002 till 2007)
and during the year this on 22.12.07 this whole assets has sold for a total consideration of Rs. 95,00,000 and in agreement of sale no such seperation of assets value as shown.
sir/ madam , i want to know how to treat this in books of account & how to calculate the capital gain.
20 August 2008
In the case of sale of the entire block used in business, the difference between WDV and sale consideration will be short term capital gain
Any profit arising from slump sale shall be chargeable to LTCG if the undertaking(s) is/are owned or held by an assessee for more than 36 months and as STCG if they are held for not more than 36 months.
Slump sale means transfer of one or more undertakings as a result of the sale for a lumpsum consideration without values being assigned to the individual assets and liabilities in such sale. Undertaking includes any part of the undertaking or a unit or division of the undertaking or a business activity as a whole but does not include individual assets or liabilities or any combination thereof not constituting a business activity.
The net wealth of the undertaking (aggregate value of the total assets of the undertaking minus the value of liabilities as appearing in books of accounts) shall be to be the cost of acquisition and the cost of improvement for the purpose of computation of capital No indexation would be given even in the case of
A report of an Accountant has to be furnished along the return of income indicating the computation of wealth of the undertaking and certifying that the net has been correctly arrived at.
So, whether the group of assets in ur case belongs to any undertaking (as explained above)is the question to be answered and accordingly treatment to be applied
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