K B K (CA final, CWA Final) (53 Points)
09 April 2010Assets are tranferred from One company to another company with in the same group. my question is whether the receiving company can claim depreciation. If so on what amount?
If the same machinery is not used at all in the previous year, will this have any effect on depn claim?
pls help me.
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 09 April 2010
Depreciation on Assets should be charged from the date on which it comes put to use . In case of transfer of Machinery depreciation shall be claimed on the basis of no. of days for which assets put to use by the both companies.
regards,
ratan
K B K
(CA final, CWA Final)
(53 Points)
Replied 09 April 2010
thank u for ur reply. But, on what amount we should calculate the depn incase if it is used. whether on amount invoiced by the selling company or on the book value of selling company ?
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 09 April 2010
on the invoiced amount of the selling company. Because Invoice amount shall be treated as the Purchase cost for the transferee company.
Hope this will clear your doubt.
regards,
ratan
Raj Saxena (1412th Tiger)
(Struggling Student)
(272 Points)
Replied 09 April 2010
| Originally posted by : Ratan Deep Saxena | ||
 |
Depreciation on Assets should be charged from the date on which it comes put to use . In case of transfer of Machinery depreciation shall be claimed on the basis of no. of days for which assets put to use by the both companies. regards, ratan |
 |
VINEET
(learner)
(53 Points)
Replied 12 April 2010
kindly clarify that in which reference you want to know the answer i.e. Income tax or as per company Law including AS.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
