Depreciation
This query is : Resolved
12 January 2008
A Partnership firm has been converted as pvt ltd company under chapter IX of the companies act, 1956 on 20th October 2007. How much depreciation will be allowed to partnership firm and company.
As per Income Tax Act Depreciation is not allowed in the year of disposal/transfer of assets. Since Partnership Firm has been converted during the financial year 2007 - 2008 weather depreciation will be allowed to firm or not.
As per Income Tax Act Depreciation to the Company should be allowed for half year as Company came into existiant only on 20.10.2007.
It appears that only half depreciation will be allowed for financial year 2007 - 2008. Is it not a disadvantage on conversion.
R. A. Joshi
As per Income Tax Act Depreciation is not allowed in the year of disposal/transfer of assets. Since Partnership Firm has been converted during the financial year 2007 - 2008 weather depreciation will be allowed to firm or not.
As per Income Tax Act Depreciation to the Company should be allowed for half year as Company came into existiant only on 20.10.2007.
It appears that only half depreciation will be allowed for financial year 2007 - 2008. Is it not a disadvantage on conversion.
R. A. Joshi
14 January 2008
till the date of conversion the depreciation on the asets will be claimed by partnership firm on the rates applicable under Incoem Tax ACt and from the date of conversion the depreciation will be calculated as per the companies act format (gross Block)at the rates applicable under both comapnies ACt and Partnership Act. The value of Assets will be as stated in the acquisiton agreement or the agrred value for acquisition.
18 January 2008
A Partnership firm has been converted as pvt ltd company under chapter IX of the companies act, 1956 on 20th October 2007. How much depreciation will be allowed to partnership firm and company.
As per Income Tax Act Depreciation is not allowed in the year of disposal/transfer of assets. Since Partnership Firm has been converted during the financial year 2007 - 2008 weather depreciation will be allowed to firm or not.
As per Income Tax Act Depreciation to the Company should be allowed for half year as Company came into existiant only on 20.10.2007.
It appears that only half depreciation will be allowed for financial year 2007 - 2008. Is it not a disadvantage on conversion.
R. A. Joshi
As per Income Tax Act Depreciation is not allowed in the year of disposal/transfer of assets. Since Partnership Firm has been converted during the financial year 2007 - 2008 weather depreciation will be allowed to firm or not.
As per Income Tax Act Depreciation to the Company should be allowed for half year as Company came into existiant only on 20.10.2007.
It appears that only half depreciation will be allowed for financial year 2007 - 2008. Is it not a disadvantage on conversion.
R. A. Joshi
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Manual Rectification through AO
- IT Return filed defective u/s 139 (9)
- Fixed Deposit Claim Relinquishment by the Nominee
- Defective Return - Tds on advance
- Income Type for interest from government bonds
- TCS ON SOFTWARE SALES
- Not a CA , can we prepare balance sheet
- Valuation of diamonds as on 01.04.2001
- What is meaning of merging of expenses or income in accounts
- Accounting treatment of write off sundry debtors
- Gstr 9 2023-24
- GSTR-9 HSN Summary and Credit Note without item
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- GST RCM not shown in GSTR-3B
- Bill from Dispatched from issue.
Trending Online Classes
-
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
Mr.Balamurugan Ranganathan15 November 2024
CAclubindia
