WDV of Block of Asset

This query is : Resolved

Megha Aggarwal (Querist)
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09 May 2011 we have only 1 car in the block as on 1April,2010 with WDV of Rs.5,00,000/-. We sold it in May for Rs.3,00,000/-. Then we purchased a new Car for Rs. 8,00,000/- on 31st March, 2011? What should be the WDV of the Block as on 31st March, 2011 & also give the full explanation for depreciation or Capital Gain/ Loss in this case.

Thanks

S.A.BADAMIKAR

S.A.BADAMIKAR (Expert)
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09 May 2011 WDV as on 01/04/10 Rs. 500000/-
less : Sale value Rs. 300000/-
Add : Purchase Rs. 800000/-
WDV before Dep Rs.1000000/-
Less Dep Full rate Rs 30000/-(15% on 200000)
Less Dep @ 1/2 rateRs. 60000/- (7.5% on 800000)
WDV as on 31/03/11 Rs.910000/-

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CA Navin Jain

CA Navin Jain (Expert)
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09 May 2011 WDV ALWAYS CALCULATED AT THE END OF YEAR THEREFORE IN YOUR CASE WDV AS ON 31.3.2011 IS RS. 1000000

DEP ON RS. 200000 @ 15%
DEP ON Rs. 800000 @7.5%

HENCE THERE IS NO CAPITAL GAIN ARISE

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Nayan Das

Nayan Das (Expert)
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09 May 2011 above reply is correct but companies act different. DEP ON RS. 200000 @ 25.89%,
DEP ON Rs. 800000 @25.89% on days basis

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CA Navin Jain

CA Navin Jain (Expert)
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09 May 2011 @ Nayan, you are wrong in the preview of campaniles act,

as per companies act if u sold a particular assets then there will always be profit or loss

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