mr X purchases the machinery worth Rs. 1,50,000 but he pays Rs. 145000 only and the remaining difference is transfer to the Kasar & Vatav a/c.. my question (1) whether the asset can be showed with full value as it represents the fair market value? and dep. should be calculated on it?
(2) should be shown on actual amount paid as income tax says that dep. should be calculated on actual amount paid of asset..
17 July 2008
43. In sections 28 to 41 and in this section, unless the context otherwise requires:
(1) actual cost means the actual cost of the assets to the assessee, reduced by that portion of the cost thereof, if any, as has been met directly or indirectly by any other person or authority:
means if x had paid only 145000 and bal 5000 is paid by kasar, then x can claim dep. on 145000 only.
CAclubindia
