accounting of fixed assets

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CA. Manish Gupta (Querist)
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15 April 2010 Kindly guide
A person is using Car for his personal purposes and now is doing business and wants to takes the Car in his business books of accounts at Depreciated Value(As per Income Tax Act), the asset originally purchased is in the name of proprietor.
Pls suggest whether assets can be taken in the books of account and the corresponding loan liability in the books of accounts. The Asset is now fully used for business purpose.

Rasesh

Rasesh (Expert)
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16 April 2010 Yes. prepare an agreement or simply an invoice on the business and sell the car to the business. Get a valuation report of the car, it you feel that the value would be more than the wdv and sell it to the business at higher value.

CA. Manish Gupta

CA. Manish Gupta (Querist)
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16 April 2010 Is it possible to take assets in the business without selling the same to the business of firm.

CA. Manish Gupta

CA. Manish Gupta (Querist)
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16 April 2010 Is it possible to take assets in the business without selling the same to the business of firm.

Rasesh

Rasesh (Expert)
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16 April 2010 Not possible. The ownership has to be transferred.

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