LAST YEAR M/S XYZ A P'SHIP FIRM SHOWED THEIR OFFICE FLAT AS INVESTMENT IN THEIR BALANCE SHEET. BUT NOW THEY WANT TO SHOW IT AS A FIXED ASSET OF THE FIRM AND CLAIM DEPRECIATION ON IT @ 10%. IS THIS POSSIBLE TO SAVE TAX?
Devendra (Chartered Accountant) (4775 Points)
20 March 2011LAST YEAR M/S XYZ A P'SHIP FIRM SHOWED THEIR OFFICE FLAT AS INVESTMENT IN THEIR BALANCE SHEET. BUT NOW THEY WANT TO SHOW IT AS A FIXED ASSET OF THE FIRM AND CLAIM DEPRECIATION ON IT @ 10%. IS THIS POSSIBLE TO SAVE TAX?
Athmaram
(Articled Assistant)
(170 Points)
Replied 20 March 2011
If the asset is registered in the name of the firm then it can be shown as a Fixed Asset and Depn can be claimed.
Thanks & Regards
Ram.
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