capital goods...

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ankur maheshwari (Querist)
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15 July 2011 Hi....
can me explain that the Vehicle Bus is include in capital goods of assesse who have the business income in last years and the bus was sold out during the previous year.

U S Sharma

U S Sharma (Expert)
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15 July 2011 if the bus is part of his business for carrying passangers then surely its capital goods, otherwise not

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 July 2011 In stead of describing it as a Capital Goods, it is better to mention it as a Fixed Asset in the Balance sheet and Capital Asset for the purpose of calculating Capital Gains.
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The question of showing the Bus as Fixed Asset arises in the year of purchase only

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In the year of sale, the sale proceeds are credited to the Block in which the asset is categorised. It is presumed that the bus was being used for the purpose of the business and depreciation was being provided on the bus.

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At the time of sale, in case there is no other asset in the block, the balance is transferred to STCG A/c provided the sale proceeds received are less than the original cost of the bus.

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ankur maheshwari

ankur maheshwari (Querist)
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15 July 2011 in previously the income was shown in U/s 44AE and now in the previous year that bus sold out.
What procedure will be done in this situation.???????

ankur maheshwari

ankur maheshwari (Querist)
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15 July 2011 in previously the income was shown in U/s 44AE and now in the previous year that bus sold out.
What procedure will be done in this situation.???????