Depreciation on disolution of Firm

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UMESH RAVANI (Querist)
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08 September 2008 The Partnership Firm is disolved in the month of June 2007 and the proprietory firm has continued the business that is the remaining only partner has. the question is depreciation is allowable how? that is for first 3 months will be considered as less than 180 days as per law and dep allowable 50% of the rate and for 9 months consider as more than 180 days however in total not more than 100 % dep rate in both the part that is in the hand of PF and in the hand of Prop. firm subsequently. so my mean to say depreciation is allowable 50%50% in PF and In Prop. firm during the year or other view? please guide me urgently.

For Example for removal of doubt in quary
WDV on 1.4.2007 in the hand PF 10000
Less: Dep 7.5% for period
1.4.2007 to 30.6.2007 till date 750
of Frim Disolved
WDV on 30.6.2007 9250
Dep For 1.7.2007 to 31.3.2008 750
in the hand of Prop. firm or 644

ie., 7.5.% of 9250
please guide

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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08 September 2008 The asset in question is not the one acquired during the year. It is an existing asset. Threfore, depreciation in full will be calculated and apportioned between the firm and the proprietorship concern in the ratio of number of days of use.

UMESH RAVANI

UMESH RAVANI (Querist)
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08 September 2008 thanks for Your quick Answer but my question is as per IT Whhether I can Depreciation As per 50% 50% or else because as per I.T there is no relevance of Number of days use except 180 days more or less at the same time depreciation may not be more than 100% for both the status . give me the amount of depreciation as per my example. in both status.
thansk once again

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