Legitimacy of the transaction

This query is : Resolved

Ramkrishna (Querist)
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31 March 2015
A PERSON PURCHASED A CERTAIN FURNITURE FROM HIS POCKET AND THEN AFTERWARDS HIS EMPLOYER REIMBURSE THE WHOLE EXPENDED AMOUNT TO HIM?

1. FURTHER THE EMPLOYER TAKES THE BENEFIT OF DEPRECIATION ON THAT ASSETS.
2. AFTER THE VALUE GET FULLY EXHAUSTED THE EMPLOYER PURCHASES THAT ASSETS FROM THE PERSON ON NOMINAL SCRAP VALUE.

MY CONFUSION ARE THAT :

1. WILL SUCH TRANSACTION IS POSSIBLE.
2. IF POSSIBLE- IN WHOSE BOOK THE ASSETS WILL BE ENTERED.

WITH REGARDS

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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31 March 2015 Firstly who is the actual onwer on record?

if employer later purchases then from that date depreciaition can be claimed by him

Ramkrishna

Ramkrishna (Querist)
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31 March 2015 MY QUESTION SEEKS THE SAME THING WHO WILL BE THE OWNER? SINCE EMPLOYER TAKE THE DEPRECIATION LATER THE EMPLOYER PURCHASE THE SAME ASSETS AS SCRAP FROM EMPLOYEE.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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31 March 2015 yes after employer purchase he can claim dpreciation but in your initial querry see the opening words..."A Person purchased...."

so tell me in such case while he(employee) purchased on whom the invoice or bill was made?

Ramkrishna

Ramkrishna (Querist)
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31 March 2015 1."A PERSON PURCHASE" NATURALLY BILL WILL BE IN HIS NAME.
2.SECONDLY HIS EMPLOYER COMPANY PAY/CAN SAY REIMBURSE THE AMOUNT TO HIM, BUT THE ASSETS REMAIN WITH THE PERSON ONLY FOR USE.
3.EMPLOYER CO. TAKES THE DEPRECIATION
4. AND AFTER BEING USE BY THE PERSON TILL ITS EXHAUSTIVE VALUE , THE CO. PURCHASE THE SAME AS SCRAP FROM HIM.

IS IT POSSIBLE.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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31 March 2015 if it is with the person with bill and also used by him then employer cannot claim depreciation till co buys from him.

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