Where to debit incase of selling a CWIP before capitaliztion, what will be the treatment if loss of gain accures? How loss will be treated (to P&L account?), gain can be considered as capital Gain?
Praveeri (Assistant Manager Finance) (197 Points)
29 November 2008Where to debit incase of selling a CWIP before capitaliztion, what will be the treatment if loss of gain accures? How loss will be treated (to P&L account?), gain can be considered as capital Gain?
CA Sunny Sharma
(Service)
(234 Points)
Replied 01 December 2008
IN my opinion inventory does not come under under the preview of Capital gains, if you earn any profit by selling WIP it should be taxed under PGBP head only......its loss/profit should also be treated as trading P/L
Praveeri
(Assistant Manager Finance)
(197 Points)
Replied 01 December 2008
| Originally posted by :CA Sunny Sharma | ||
| " | IN my opinion inventory does not come under under the preview of Capital gains, if you earn any profit by selling WIP it should be taxed under PGBP head only......its loss/profit should also be treated as trading P/L | " |
Sir, I Was asking for CWIP not WIP of inventory, can I get details for my query?
CA Sunny Sharma
(Service)
(234 Points)
Replied 01 December 2008
If the final product of CWIP is the the product in which company trades then answer will be same i.e taxable under PGBP but if it is not the case then it is a capital gain/ loss dos not matter it is a CWIP of actually contructed or capitlized good.
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