niloy sanyal (account manager) (777 Points)
05 March 2011First Said that our Comapny Situated in West Bengal.
Please note that We have purchased a New Machine in 1994 at Chennai . Now this Year 2011( March) we want to sale this Machine . So please suggest us what is the Procedure to sale this old Machine & What Taxes (SALE TAX, ANY TCS etc.) wil be aplicable ? (IF We sale the machine to Register /unregister Party in West Bengal)
We know Machine is a Capital Goods so how to showing this transaction in Profit & Loss A/C and Blance Sheet also explain
Pankaj Arora
(Learner)
(3134 Points)
Replied 05 March 2011
No tax will be applicable because you are not trading in selling and buying machines. Just passes an entry of profit or loss in P & L account.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 05 March 2011
| Originally posted by : niloy sanyal | ||
 |
First Said that our Comapny Situated in West Bengal. Please note that We have purchased a New Machine in 1994 at Chennai . Now this Year 2011( March) we want to sale this Machine . So please suggest us what is the Procedure to sale this old Machine & What Taxes (SALE TAX, ANY TCS etc.) wil be aplicable ? (IF We sale the machine to Register /unregister Party in West Bengal) We know Machine is a Capital Goods so how to showing this transaction in Profit & Loss A/C and Blance Sheet also explain |
 |
Sales tax / Vat/ CST : applicable as per the state rules, if u have used exemption forms in purchase then taxable otherwise not.
TCS : applicable if the capital goods are cleared as scrap.
for book entry u have to get the withdrawn value as on 1st april in the year of sale, and deduct the same from sale proceeds, net balance will come in P/L account as profit on sale of capital goods ( loss if the sale price is less than wdv on 1st april)
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 05 March 2011
| Originally posted by : niloy sanyal | ||
|
|
First Said that our Comapny Situated in West Bengal. Please note that We have purchased a New Machine in 1994 at Chennai . Now this Year 2011( March) we want to sale this Machine . So please suggest us what is the Procedure to sale this old Machine & What Taxes (SALE TAX, ANY TCS etc.) wil be aplicable ? (IF We sale the machine to Register /unregister Party in West Bengal) We know Machine is a Capital Goods so how to showing this transaction in Profit & Loss A/C and Blance Sheet also explain |
|
Sales tax / Vat/ CST : applicable as per the state rules, if u have used exemption forms in purchase then taxable otherwise not.
TCS : applicable if the capital goods are cleared as scrap.
for book entry u have to get the withdrawn value as on 1st april in the year of sale, and deduct the same from sale proceeds, net balance will come in P/L account as profit on sale of capital goods ( loss if the sale price is less than wdv on 1st april)
CAclubindia
