selling out the old machinery

[Asked by Guest]

first thing can any 1 tell me how to check the current value of machinery in balance sheet

and second thing what is the procedure to sell the machinery

we have to make a sell billl for the machinery or first we have to make the agreement regarding for selling the machinery & how to make sale bill including gst

[Ganeshan Kalyani]

Assets are accounted under an asset code in accounting. Pls check in your organisation for this info. Separately depreciation is accounted in separate ledger account. If you take dump of both the data and net it of. You will get written down value of the asset as on the date.

You can sell the asset by charging applicable tax on it.

[YAGAY and SUN]

You may refer asset register to find the assets. Agreement/PO/Contract should be prepared prior to selling of machine. On WDV you can pay the taxes under GST Laws.

AI Summary

GST on sale of used machinery requires issuing an invoice charging applicable tax and computing tax on written down value.
Compute the machinery's written down value by consulting the asset register and netting original cost against accumulated depreciation; prepare an agreement or contract before transfer; issue a sale invoice on sale and charge applicable GST, with tax computed and discharged in accordance with GST rules using the WDV where relevant.