fixed assets

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This query is : Resolved

CA. Manish Gupta (Querist)

24 October 2009 If a director of a pvt ltd co. purchases a property in his name and the same is used for the purpose of business of company then can the company claim the depreciation on the building by taking it as a fixed assets in the books of the company or the director should rent out the property to the company and the company should claim rent as expenditure. kindly clarify

venkat reddy gopidi

venkat reddy gopidi (Expert)

24 October 2009 Campany cannot claim depreciation on the assets which are not in the name of company

Sreedhar Atchutuni ACA,GradCWA

Sreedhar Atchutuni ACA,GradCWA (Expert)

24 October 2009 For claiming depreciation one of the condition is- The assets must be owned, wholly or partly, by the assessee.

Further:-
Where the business or profession is carried on in a building not owned by assessee and any capital expenditure is incurred for construction of any structure or for renovation, improvement or extension of the building then depreciation will be allowed in respect of such capital expenditure at the rates prescribed for "building".

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