02 March 2009
Mr A has purchased assets for his business and later on he sold the assestto Mr B.Later on Mr A reaquires the same asset on hire purchase ? my query is that who will claim depriciation and what will be the cost
Explain the above in relation to explanation 4 and 4a to Sec43
02 March 2009
under section 4A MR. is not the legal owner any more so he can not claim depreciation and the legal owner will claim the depreciation on the writtern down value of the asset in the hands of Mr.A at the time of transfer of asset by Mr.A to legal owner.
practicle question : taxmann direct taxes page no. 264 AY 2008-09.
02 March 2009
As per act depreciation will be claimed by the person who is the legal owner of the asset, however asset acquired on hire purchase will qualify for depriciation. Mr. A has purchased assets for his business and later on he sold the asset to Mr. B. Later on Mr. A reacquires the same asset on hire purchase ?. my query is that who will claim depreciation and what will be the cost in relation to 4 and 4A of sec 43?
As per 43(4) and 43(4A), owner changes for claming Depreciation U reply my query as below Hire purchase will b covered under reacquisition i.e. 4 and sale and lease back,hire will be covered under 4A.
02 March 2009
As per act Speculative transaction" means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips?
I am not able to understand the same please help me in understanding the same
02 March 2009
what do you mean by hire purchase?? does MR.A has purchased it again or he has taken the asset on hire to use it.
if purchased it than MR.A can claim depreciation coz hes the legal owner ie. reacquition of assets [expln. 4 to sec. 43(1) and
if MR.A has hired it than he can not claim depreciation coz hes not the legal owner, coz he has sold the asset to MR. B and now MR.B is the legal owner, Mr.A is only using the asset. [expln. 4A to sec. 43(1)]
03 March 2009
As per explanation to sec 4 and 4a,Depriciation will be claimed who is the owner of the asset? is this correct,if yes then it is not clashing with the asset acquired under hire purchase aggrement?
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