wether exemptn is allowed if prsn has puchased CAR, COMPUTER, MACHinary ( second hand ) while shifting to SEZ?
5 Replies
CA Manish Garg
(CA )
(287 Points)
Replied 11 October 2009
COND... as it is allowed only for plant mach and land building???
Rajeev
(www.rkmco.com)
(985 Points)
Replied 11 October 2009
yes exemption u/s 54GA is allowed for an assessee being an industrial undertaking but its only for Machinery, plant, building, or land used for the business of an industrial undertaking situated in an urban area and Transfer should be due to shifting to any Special Economic Zone whether developed in any urban area or any other area ,Within a period of 1 year before or 3 years after the date of transfer purchased machinery, plant or acquired building or land or constructed building and completed shifting to the new area.
Quantum of exemption :If the cost of the new assets and expenses incurred for shifting are greater than the capital gain, the whole of such capital gain. Otherwise capital gain to the extent of the cost of the new asset
Its should be noted that computers and cars would constitute as "plant" for the limited purpose of 54GA hence the exemption would be available for computers and cars as well , apart from other plant and machinery( first hand or second hand ) as per my knowledge there is no restriction placed on second hand machinery
CA Manish Garg
(CA )
(287 Points)
Replied 12 October 2009
in given e.g. is it also applicable to CAR , COMPUTER ??
Rajeev
(www.rkmco.com)
(985 Points)
Replied 12 October 2009
yes , car and computer would constitute as plant
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