Section 35AD and Hotel Industry

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Querist : Anonymous

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Querist : Anonymous (Querist)
12 July 2010 We are a Partnership Firm having constructed a Hotel and a Shopping Mall.We have commenced operations of the Hotel in April,2010.

Our questions are :
1. Can we claim deduction of 100% of Capital Expenditure incurred on the Project ?
2. What does Capital Expenditure include ?
3. Do we have to segregate expenditure on Hotel and Mall or is the deduction u/s 35AD applicable to both ?
4. What are the advantages or disadvantages in terms of taxation if we covert the Partnership Firm into a LLP or a Private Company ?

Regards,

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Querist : Anonymous

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Querist : Anonymous (Querist)
13 July 2010 If the Hotel and the Mall are in the same premises,will the entire Capital Expenditure be dductible ?



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