Takeover of a proprietorship firm by a company


This query is : Resolved 

(Querist)
06 July 2012 Our client has incorporated a new company which has taken over a proprietorship business. What will be the implications for the company in respect of income tax?

07 July 2012 as to what ??

Nidhi Jain (Querist)
10 July 2012 Relating WDV of Assets, whether opening stock will be shown or will it be shown as purchases, Depreciation will be charged proportionately or for the full year, opening WDV will be shown of assets or purchase of assets will be shown?

10 July 2012 WDV to the previous owner will be the COA for the company
if it is taken in between the year then proportionate depreciation will be claimed by the company and the proprietor
in all you can say that only the proportionate figure will be divided b/w them and nothing
suppose a block WDV is Rs.100 and purchase during the year is Rs.10 (assume Depn @10%)
and if the conversion take place after six months
then
Proprietor will claim depn Rs.5.5/-
and the company will claim Rs.5.5/-
and the asset will be shown in the b/s of company at Rs.99/-


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