if pvt ltd company sell any asset from block of asset then what is the rule for taking sold asset depreciation as per company act
please answer as early as possible.
9 Replies
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 09 July 2011
as per ma opinion,
there is no block of asset concept in companies act
compute depriciation on asset till d date it is sold
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 09 July 2011
AS PER COMPANIES ACT THERE IS NOT CONCEPT OF BLOCK OF ASSETS , WHEN ANY ASSET IS SOLD THEN DEPRECIATION WILL BE CHARGED TILL THE DATE OF SELLING,
IFR ANY ASSET IS SOLD THEN PROFIT / LOSS ALWAYS COME.
CA Aditya Modi
(Associate Manager)
(159 Points)
Replied 09 July 2011
There is no such Block Cocept in companies Act. We need to take the Depreciation on individual assets. In case of sale we will ahve to make adjustment the period of holding
ankur bansal (CA Final)
(student)
(124 Points)
Replied 09 July 2011
depreciation is allowed as number of days assets have been in used.
calculate as per ths rule
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 09 July 2011
| Originally posted by : CA Aditya Modi | ||
 |
There is no such Block Cocept in companies Act. We need to take the Depreciation on individual assets. In case of sale we will ahve to make adjustment the period of holding |
 |
AGREED.
C.A. Jignesh N. Mehta
(C.A.)
(1030 Points)
Replied 10 July 2011
Calculate depreciation for the days till asset is not sold. Sale consideration less the WDV will be profit / loss on the asset so sold.
This profit / loss gets reduced from the computation when profit as per income tax act gets computed.
so the block concept is not there in companies act .
Manish Garg
(manager)
(24 Points)
Replied 22 August 2011
AS PER COMPANIES ACT THERE IS NOT CONCEPT OF BLOCK OF ASSETS , WHEN ANY ASSET IS SOLD THEN DEPRECIATION WILL BE CHARGED TILL THE DATE OF SELLING,
IFR ANY ASSET IS SOLD THEN PROFIT / LOSS ALWAYS COME.
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