Treatment of Prepaid road tax on sale of office car

Suraj Mishra PECPL (15 Points)

29 October 2022  

Dear Sir,

What will be treatment of Prepaid Road Tax on sale of office car? As we know Roar Tax is paid once in 5 years. In the 1st year Roar Tax was capitalized. In 2021 we paid the roar tax for another 5 years. So in 2021 booked for Road tax for 1 year and Prepaid Roar Tax for balance 4 years. Now the company has decided to sale the Car in 2022. So, what will be treatment for Prepaid Road Tax on sale of Car.

 

Thanks