Deduction U/S 80 IA
This query is : Resolved
15 July 2011
My client had bought the windmill in 2006 and 2008 resp. 2 machines separate in there mother co.
My client is planning to to sell these 2 machines to their sister co. on current market value, or book value etc.
can Second company ( Sister Concern)can claim the 10 year tax holiday U/S 80 IA . As the tax holiday benefits has not been taken by the 1st company i.e. mother company.
also update whether my client can take 20% additional depreciation on wind mill in 1st year like they do so on other plant and machinery ?
My client is planning to to sell these 2 machines to their sister co. on current market value, or book value etc.
can Second company ( Sister Concern)can claim the 10 year tax holiday U/S 80 IA . As the tax holiday benefits has not been taken by the 1st company i.e. mother company.
also update whether my client can take 20% additional depreciation on wind mill in 1st year like they do so on other plant and machinery ?
16 July 2011
Sub section 3 of section 80IA restricts deduction on such transfer where machinery has been used previously for "any" purpose.
"Any" includes all the purposes including the purposes covered under this section.
.
Further transfer of Plant & Machinery and restructuring of business is allowed in case of State Electicity Boards only.
.
Explanation 1 and Explanation 2 are also
restricting such transfer
.
Sister concern means a different assessee in the eye of IT
.
In my view, by taking such step, the assessee as well as its sister concern will lose the benefit of S 80IA.
"Any" includes all the purposes including the purposes covered under this section.
.
Further transfer of Plant & Machinery and restructuring of business is allowed in case of State Electicity Boards only.
.
Explanation 1 and Explanation 2 are also
restricting such transfer
.
Sister concern means a different assessee in the eye of IT
.
In my view, by taking such step, the assessee as well as its sister concern will lose the benefit of S 80IA.
16 July 2011
Kindly go through the respective section under which you want to claim the exemption and see the restriction. Transfer of wind mill is to be considered as second hand machinery which is not permitted.
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
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- 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
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
