12 September 2010
Sir Block of assets ( Vehicles ) Opening balance as on 1.4.09 Rs. 200,000 Sale proceeds of vehicle Rs. 350,000 Purchase of another vehicle Rs. 600,000
The company has made a profit of Rs.150,000 on sale of vehicle.Since the WDV exceeds the sale proceeds there will not be any short term capital gains.Hence in computation of profit for the Company this has to be excluded.Can I show this amount as a deduction from profit in the computation sheet under the head " Income to be excluded" ?
14 September 2010
No It is not Short Term Capital Gains as the block has not been deleted The Opening block Will be totalled with new addition of Rs 2 lacs which makes it 8 lacs and from this the sale proceeds shall be reduced which make the balance 4.5 lacs and on this balance 15% depreciation may be claimed ie; 67500/-assumption: new vehicle is used for at least 182 days
CAclubindia
