When as Fixed asset is converted in stock in trade at higher value, then whether MAT is payable on the difference amount?
For eg., an Fixed asset worth Rs. 10,000 is converted into stock in trade at Rs 25,000 on 01/04/2008. The differential amount of Rs 15,000 is subject to capital gains in the year when the stock in trade will be sold.
But for the FY 2008-09, whether the Rs 15,000 will be subject to MAT? Please clarify.How this Rs 15,000 will now appear in the Balance sheet? Whether the unrealized profit of Rs 15,000 has to be passed through the P&L a/c or can be directly transferred to Reserve?
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