Afzal Momin (CA FINAL) (177 Points)
21 August 2011
Plz let me know that Capital Gain will be attracted on sale of Truck which is been used by a Firm and also how it will be calculated ?
Suraj Agarwal
(Self Practitioner in Income Tax & GST)
(782 Points)
Replied 21 August 2011
HI, AS GIVEN FACTS BY U, IT SEEMS THESE TRUCKS ARE USED FOR COMMERCIAL PURPOSES. THUS IT CAN NOT TERMED AS A CAPITAL ASSETS UNDER INCOME TAX ACT. THEREFORE CAPITAL GAIN TAX WILL NOT ATTRACTED.
Sunshine
(Helping All)
(10575 Points)
Replied 21 August 2011
If the truck is not a part of stock in trade then capital gain will be attracted......it will be a capital asset...but no indexation benefit can be claimed....as the firm must be claiming depreciation on it....
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 21 August 2011
for trucks owned for business purpose then depriciation was claimed in previous years, and on depriciable assets "short term capital gains/loss" are applicable.
CA Saiyum khan
(Practicing CA)
(690 Points)
Replied 21 August 2011
Sales consideration of the truck being sold would be reduced from the opening WDV of the block of assets i.e. commercial vehicles. If the consideration exceeds opening wdv then there would be short term capital gain other wise the depreciation would be chargeable on the balance amount of WDV. If the said truck is the last asset of the said block the short receipt would be claimed as short term capital loss.
Sanket
(!..Live to Give..!)
(16427 Points)
Replied 21 August 2011
Capital gain Provision Will be attracted and it will be termed as a Short Term Capital Gain/Loss....
CA RV
(Manager-Accounts & Taxation)
(33 Points)
Replied 21 August 2011
Please refer to section 50 of Income Tax Act, 1961, depreciable assets falls under the ambit of STCG/STCL. Sale consideration has to be reduced from the block of vehicles in this case.
Sanat kumar
(Chartered Accountant)
(265 Points)
Replied 22 August 2011
| Originally posted by : CA Saiyum khan | ||
 |
Sales consideration of the truck being sold would be reduced from the opening WDV of the block of assets i.e. commercial vehicles. If the consideration exceeds opening wdv then there would be short term capital gain other wise the depreciation would be chargeable on the balance amount of WDV. If the said truck is the last asset of the said block the short receipt would be claimed as short term capital loss. |
 |
Agreed with CA. Saiyum Khan
devang
(CA FINAL article )
(181 Points)
Replied 23 August 2011
if it will be depreciable assets it would be treat as short term capital gain.
| Originally posted by : CA Saiyum khan | ||
|
|
Sales consideration of the truck being sold would be reduced from the opening WDV of the block of assets i.e. commercial vehicles. If the consideration exceeds opening wdv then there would be short term capital gain other wise the depreciation would be chargeable on the balance amount of WDV. If the said truck is the last asset of the said block the short receipt would be claimed as short term capital loss. |
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AGREED WITH CA.SAIYUM KHAN
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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