I am from a private limited korean company.We have our existing manufacturing plant in tamilnadu and we are planning to start one more plant in Pune. I would like to know what is the pros and cons? 1. when i make single entity? 2. when i have 2 different entities?
22 January 2010
From the given facts; it can be easily understood that present plant is running on profits that is why installation of second plant is planned.
In initial years; good amount of depreciation is allowable by the Income-Tax Act. To avail the depreciation benefits; in my opinion; Single Entity would be beneficial.
If other facts are given; the answer may be different.