Fixed assets Purchase as part of relocation

This query is : Resolved

anil (Querist)
Follow

05 August 2010 Fact:
If an Employee Purchase any Fixed for Personal Use, and if company agrees to pay as part of Relocation Exp.

Query:
Will company able to treat it as Assets or Expenses it off as a part of Relocation Exp?

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
Follow

05 August 2010 If the assets are purchased in the name of the employee & Co. bears the expense:
a) The Co. can charge it off as expense in its books.
b) The entire value of such assets will be added to the income of the employee & taxed as perquisites.

If the assets are purchased in the name of the co. & given to employee for personal use:
a) The assets will be capitalised in the books of the Co. on which it will be entitled to claim depreciation.
b) Based on the nature of the asset, a fixed percentage of the value of asset will be added to the income of the employee every year & taxed as perquisite.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Anant Kuber

FCA. LAL BAHADUR SHASTRY GUBBA

Vishal Dave

NISHANT SIPANI

sriram deven

Subscribe Now

Fixed assets Purchase as part of relocation

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

GST CONSULTANT

Senior Executive

CA Final

Manager- Finance and Compliance

Accountant