Nitesh Mangal (CA-PCC Articale Assistant) (269 Points)
18 December 2010Accroding to M.K Gupta Sir goodwill is not taxable and other teacher opnion is taxable. accroding to income tax act under the head of PGBP.
CA Anshu Agarwal
(B€ @LW@¥$ ]-[@Pp¥)
(1832 Points)
Replied 19 December 2010
Capital gain on sale of goodwill
a) Goodwill of a business or a trademark or brand name associated with a business or a right to manufacture, produce or process any article or thing, or right to carry on any business, tenancy rights, stage carriage permits and loom hours –
Ø In case such assets purchased them from a previous owner, COA shall be purchase price.
Ø In any other case (i.e. self generated assets): COA shall be NIL (not FMV as on 01-04-1981 in case acquired before 01-04-1981)
(b) Self-generated assets (other than referred to above)–(e.g. goodwill of profession) if cost of acquisition is not correctly ascertainable, it is not possible to apply the provisions of section 48. Hence no capital gain.
Ravi Prasad
(Self employed)
(148 Points)
Replied 19 December 2010
Will the goodwill taxable under Value Added Tax Act as a sale of intangible movable asset
varun jain
(Employed)
(363 Points)
Replied 19 December 2010
Depreciation on goodwill has been a matter of considerable debate.
The Mumbai Tribunal in the case of Kotak Forex Brokerage Limited V. ACIT (2009) 33 SOT 237 held that "goowill" is nothing but positive reputation built by a company over a period of time. Thus goodwill is in the nature of 'business or commercial right' and hance eligible for depreciation u/s 32 of the IT Act. However, Mumbai Tribunal in an another judgement in the case of RG Keswani V. ACIT (2009) 308 ITR 271 held that goodwill is not a tangible asset and is not eligible for depreciation u/s 32.
The term business and commercial right has not been specifically defined in the IT Act. In my view one should refer to the judgments of High Court of the state in which the company is registered.
CA Anshu Agarwal
(B€ @LW@¥$ ]-[@Pp¥)
(1832 Points)
Replied 19 December 2010
goodwill is not a goods... so it is not taxable under value added tax acts.
Raghunath Prasad
(WORKING)
(385 Points)
Replied 20 December 2010
goodwill is not a goods... so it is not taxable under value added tax acts.
CA. Vikash Dwivedi
(Financial Planning & Analysis)
(3167 Points)
Replied 20 December 2010
Boss, goodwill is not depreciable Asset, it is amortised and not depreciated. Refer AS on Intangible Assets. Generally amortised over the period of 5 years, subjct to certain conditions.
varun jain
(Employed)
(363 Points)
Replied 20 December 2010
Vikash @
My reply was in context to Income TAx Act, 1961 and what your are answering is in context to accounting treatment as per the accountiing standards.
Sandeep Pandey
(CA FINAL)
(1306 Points)
Replied 20 December 2010
| Originally posted by : Vikash Dwivedi | ||
 |
Boss, goodwill is not depreciable Asset, it is amortised and not depreciated. Refer AS on Intangible Assets. Generally amortised over the period of 5 years, subjct to certain conditions. |
 |
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
