17 August 2009
A car is purchased after october 2008.For this ,an old car is exchanged and remaining amount paid by cheque. My question is that how the dep. will be calculated? Section says that WDV is calculated by deducting cash recd/receivable from sale of old asset.Whether exchange value of old car will be deducted to calculate WDV? whether the value of car that existed on 1/4/2008 and still remaining in the block on 31/3/2009 will be reduced with exchange value and dep.calcuted thereon at full rate ?Please explain the case.
CAclubindia
