Non moving stock of packing material lying with the company since long ( value runs into lacs ) . now decided to segregate the whole as good and not required. The latter to be sold off as scrap. Kindly give me the different methods of accounting this income as well as the respective tax treatments for the same.
08 October 2009
The diminution in the value of closing stock will automatically get reflected in the revenue account. There does not appear to be special tax treatment.
The sale proceed shall be included as an indirect income.
CAclubindia
