14 March 2014
Dear Mihir, Goodwill are in the nature of two types-1)Self-generated goodwill which is not of capital nature. and 2) Purchased Goodwill .
Goodwill under AS-26, is a deliberate purchased goodwill, means the person has valued his goodwill of the business and charged the money accordingly. SUCH GOODWILL SHALL BE WRITTEN OF OVER A PERIOD OF 10 YEARS. (MAX 10 YEARS)
in your case, if it the goodwill under AS-26, then goodwill can be written off and Depreciation u/s 32 can be enjoyed
CAclubindia
