Transfer of capital wip

Abhishek (Accountant) (55 Points)

21 June 2013  

Dear all,

 

I am having two Partnership firm, (One partner in common in both the firms) for construction. In One partnership firm We have taken all the bills of Furniture & fixtures, However in last year's balance Sheet it was shown as Capital WIP and accordingly No depreciation was claimed. No projects are there in thi sfirm.

 

However in the other firm mega project is going on. Now I want to transfer the abovementioned Capital WIP into this firm.

 

My query is

1. Can I do so? and if Yes How?

2. What will be Income Tax Implications for this transaction.

 

Thanks in advance