purchase of assets in own name by proprietor

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2011 sir,
i want to ask when a proprietor buys a assets say car in his own name instead of firm's name then whether he can claim depriciation on that asset? and he only has this business income then can he claim deduction of lic primium paid for his own under 80c

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)

07 May 2011 In case of proprietorship concern , whatever is in the name of proprietor and used for his business can be allowed as deduction for the depreciation on the same.

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2011 sir , isnt it same for partership concern n company , i mean if an asset is purchased on its partner name or director name then can same be allowed for depriciation purpose?

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)

07 May 2011 In case of Partnership it can be allowed. But in case of company, it wont be allowed. Because partnership is not a distinct and separate legal entity. It cant hold any property in its own name. So the partners purchase the property in their own name on behalf of the firm and the firm can claim depreciation. On the contrary, a company is a separate legal entity capable of holding property in its own name. So, if the assets are in the name of the directors, then the depreciation claim is not allowable to the company.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2011 thanks sir..

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