Deepak sharma (Learner) (1431 Points)
10 August 2011HI to all
A Firm's constitution has been changed w.e.f 01/01/2010 from Proprietorship to Partnership
Two Balansheet has to made -> Proprietorship 01-04-09 to 31-12-09 & Partnership 01-01-10 to 31-03-10
my question at what ratio ...depreciation will be claimed in both balance sheet
please help
regards
Deepak
Ganga
(CA Final)
(101 Points)
Replied 10 August 2011
I think Ratio Should be Calcuated Day Wise or Month Wise ie.9:3 Ratio
CA Himanshu Khurana
(Chartered Accountant)
(813 Points)
Replied 10 August 2011
as per income tax act Ratio Should be Calcuated on Day Basis.
Deepak sharma
(Learner)
(1431 Points)
Replied 10 August 2011
thnkx ganga
HMM me also think the same that the annual amount of depreciation should be claimed as 75:25 %
but i need , sured answer........
Deepak sharma
(Learner)
(1431 Points)
Replied 10 August 2011
thnkx ganga
HMM me also think the same that the annual amount of depreciation should be claimed as 75:25 %
but i need , sured answer........
CA Rashaad Meer
(...)
(129 Points)
Replied 10 August 2011
Ratio Should Be Based On Time Period i.e 9:3...
CA HIRAL PATEL
(CHARTERED ACCOUNTANT)
(536 Points)
Replied 10 August 2011
simple 1/4 to 31/12 & 1/1 to 31/3.
9:3.
kamal kishor sen
(STUDENT Rajasthan)
(2156 Points)
Replied 10 August 2011
Agree with above .. ratio should be 9:3
Sanat kumar
(Chartered Accountant)
(265 Points)
Replied 16 August 2011
For the purpose of preparation of books of accounts, we have to calculate the depreciation on the basis of number of days.
Again, In income tax Act, for the purpose of claiming deduction of depreciation while calculating business income, we need to calculate depreciation on number of days basis. (See 5th proviso of section 32 of Income tax Act).
CA PARAS BAFNA
(Practising CA )
(33423 Points)
Replied 16 August 2011
In terms of Section 45(3) , it is a transfer.
Whenever the transfer takes place, the transferer prop. firm will not get any benefit as per the depreciation provisions.
We know that when an asset is sold, in the year of its transfer, depreciation can not be claimed on such transferred asset.
So, here my view goes against all the participants and hope every one will agree with me.
The firm shall claim depreciation.
Since the assets have been utilised for less than 180 days, Dep. Will be allowed @ 50% of the normal rate.
| Originally posted by : Paras Bafna | ||
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I think, the word succession has confused to all. In terms of Section 45(3) , it is a transfer. Whenever the transfer takes place, the transferer prop. firm will not get any benefit as per the depreciation provisions. We know that when an asset is sold, in the year of its transfer, depreciation can not be claimed on such transferred asset. So, here my view goes against all the participants and hope every one will agree with me. Proprietary concern will not claim any depreciation on the assets which are being transferred to the new partnership firm. It has to do the exercise of calculation of capital gains on the capital asset which are being transferred into the Partnership Firm as capital contribution or otherwise. The firm shall claim depreciation. Since the assets have been utilised for less than 180 days, Dep. Will be allowed @ 50% of the normal rate. |
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agreed with paras bafna sir..........thanx 4 explaining wonderfully
CAclubindia
