08 July 2012
My Friend, There is no loss on car sold, as per income tax act 1961, u/s 50(1)
WDV of car 67,000/- ADD purchase during the year 5,00,000/- LESS SOLD during the year (65,000/-)
hence, wdv of the block 5,02,000/-
this value should be appear in your balance sheet. depreciation will be charged on 5,02,000 as per rate i.e. 15%.
As per section 32(2) vat and other expenses related to asset will be capitalised.
VAT - it is dependent on your state and mateer with which kind of vat system you followed. in some state capitalised vat paid will be adjust against credit of vat.
CAclubindia
