26 December 2019
We are planning to convert our LLP into the Private Limited Company. Right now, in LLP, we are applying the Depreciation method as per Income Tax Act. Hence, at the block of asset level, we have the WDV. We do not have the asset wise value like Purchase cost and WDV.
How to treat the same while we convert the LLP into Private Limited company because as per the Companies Act, we need to follow the useful life method ?
22 May 2020
You can go through the Company Act Depreciation Chart where for each category of Asset there is an estimated useful life mentioned. You have to divide the cost of the assets with the useful life of the asset as mentioned.
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