Assets of Pvt. Ltd. Co.

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Shah Tarun (Querist)
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22 October 2008 In accordance with assets which of the following option is beneficiary for private limited company

-To purchase assets directly on company's name or
-To purchase asset on director’s name and then director give it on lease to company.

Kindly answer with view of corporate law and Taxation.
Which option proves better at a time of amalgamation/ liquidation.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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23 October 2008 THere can not be standard answers for questions of this nature. Each case will be unique and will require a specific solution. You have to state all the facts and figures for getting solution.

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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23 October 2008 This is be viewed from the pros & Cons of both the alternatives:

For eg:

Alt 1 - Lease:

Lease Rentals are wholly deductible from Income Tax Act but there is no dep benefit.

Alt 2 - Own:

Depreciation is allowed over a period of long run

CA Bosu babu

CA Bosu babu (Expert)
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24 October 2008 As per IT act which ever it is giving more benifit i mean more deduction you can take that option....

and I am supporting Mr.Srinivasan

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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30 October 2008 And it depends upon whom do you want to benefit, director or company or both!