15 December 2010
The assessee is company who has incurred the expenditure for improvement of leasehold premises. Now the company is going to close its activity. company is intending to transfer its improvements to the owner of the premises who are the directors of the company at cost. will this transaction attract the VAT liability on such transfer? In this case the assesse had claimed the depriciation on such improvements. Will they be disallowed if such transfer is made?
16 December 2010
VAT is not applicable on immovable property.
Depreciation is allowed as per block of assets, The transfer amount has to be deducted from the block, and balance amount will be treated as short term capital gain / loss.
CAclubindia
