Dear friends,
Following is the situation in the amalgamation.
Plant 50 Lacs
Building 150 lacs
Furniture 10 Lacs
Knowhow 15 Lacs
Patents 10 Lacs
Goodwill 50 Lacs
All assets transferred to a foreign company by an Indian company in a scheme of amalgamation. So Explanation 7 to Section 43(1) is not applicable. This means that the actual cost of the plant, building, furniture, etc. will be actual consideration paid or payable by the foreign company to Indian company. Can we get depreciation on Goodwill? If not can it be adjusted in the other assets proportionately increasing their actual cost? If not whether the goodwill can be claimed as expenditure u/s 37 (1) by way of writing it off over 5 years?
Please note that since the foreign company has a business connection in
Thanks in advance,
Regards
Chintan