Dear All,
I have construction business, constructed building of 4 floor, want to trasfer 2nd floor to my fixed assets.
pl inform me at which amount it should be transfer
at FMV or at Cost ?
and profit realised is to be paid in which year?
CA. Biraj Kotecha
Sir,
Conversion of stock in to asset is also considered as sale. Profit is to be realised in the year in which the stock is transferred.
when a capital asset is converted into stock in trade capital gains arises, which is taxable in the year in which such asset is sold,but this is not the case if its vice versa i.e. conversion of stock in trade into Fixed asset.,it should be transfered at cost & if profit is realised on subsiqueint sale than it should be taxable as short/long term capital gains in the year of sale
CAclubindia
