SALE OF FIXED ASSET

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2010 In case of sale of fixed asset, whire arriving at the profit/loss on sale of asset, whether the VAT amount should also be included in the sale value.
Eg: WDV 2,00,000
Sale value Rs.2,81,250 [Rs.2,50,000
+ VAT @ 12.5%(Rs.31,250)]

whether the profit on sale is Rs.2,81,250-2,00,000 = Rs.81,250/-
OR
Rs.2,50,000 - 2,00,000 = Rs.50,000.

hshivakumar

hshivakumar (Expert)
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19 June 2010 yes VAT is applicable and your profit is Rs. 50,000/- only.

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2010 thanks sir

hence for the purpose of determing the profit / loss on sale of fixed asset the VAT element should not be included in the sale value.

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