08 September 2008
Hi Experts, My company manufactures auto parts, but recently scraped and sold Rotary table (made inhouse from iron sheet cuttings could be waste) to one of its creditors and that creditor uses it as its asset, whether TCS is applicable, Rotary table was never capitalized.But,let me explain, the creditor does job work of machining for us and he uses it as its asset for placing machinery over it and our unit is excisable, how can we treat,we have shown it in excise records as scrap (1) if we treat it as scrapping of old asset (2) selling of new asset developed out of scrap and fresh material(3)developed for own use but considered unusable and sold, Please give opinion with discussion.
You are a separte legal entity and they are separate entity so both are need to follow different procedure.. for you its scrap you will treat as a scrap and theyu will be treat as a assets ...
CAclubindia
