Depreciation
This query is : Resolved
05 August 2012
Hello,
sir
sir there is a company have 2 inter units in 2 different states. And now one unit want to transfer a machine to its another unit.
let the machine cost is 1000000 and depr. rate is 10% after 3 years its book value wiil be 700000 now it want to transfer machine to other state ...whether comany can transfer or sale it to other unit on price less then 700000 to decrease its some cst......?? and if yes then in other unit how the depr . will be charged it wiil be from cost of machine which is 1000000 or bok value or transfer rate
depr method is SLM not wdv
sir
sir there is a company have 2 inter units in 2 different states. And now one unit want to transfer a machine to its another unit.
let the machine cost is 1000000 and depr. rate is 10% after 3 years its book value wiil be 700000 now it want to transfer machine to other state ...whether comany can transfer or sale it to other unit on price less then 700000 to decrease its some cst......?? and if yes then in other unit how the depr . will be charged it wiil be from cost of machine which is 1000000 or bok value or transfer rate
depr method is SLM not wdv
CA Amit Jaiswal
(Expert)
05 August 2012
Depreciation under income tax shall be allowed on the amount at which the asset is recorded in books (i.e. its actual purchase price)
SANYAM ARORA
(Expert)
05 August 2012
Agreed with the reply
05 August 2012
What you mean by transfer to other state? whether this transer is within the group of companies or branch?
06 August 2012
CA Amit g and Mr. sanjay arora thank you very much for ur reply...sir but i am asking as per comanies act
CA Guru g it is branch
CA Guru g it is branch
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