14 August 2011
The manufacturing company has given its building on rent.As per income tax act depreciation can not be claimed as the building not in use of company business.
Under companies act, Can we claim depreciation in books of accounts?
We if claim then liability towards MAT will reduce.
14 August 2011
Try to establish connection between the lease transaction with the business of the company. If business of the company itself leasing then you can claim depreciation in both Income-tax act as well as Companies,Act.
15 August 2011
If the land is owned by the company then depreciation can be claimed as per Companies Act. But at the same time rent income has to be booked in the company.
15 August 2011
Yes you can claim depreciation as per Companies Act while calculating book profit whereas under Income Tax Act no depreciation can be allowed on rental income.
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