27 October 2012
Firstly find the date and amount at which the company convert its Fixed Asset in to Stock.
Then find the Capital gain whether Long term or short term (If depreciation is claimed it is always short term gain only).
when the converted stock is sold out you will have to deduct from your selling price the amount at which you transferred the property from Fixed Asset to Stock in Trade.
You will be liable to tax for capital gains when the stock is sold and not when you decided to convert fixed asset into Stock in trade.
CAclubindia
