Transfer of machinery & finance from individual to firm
This query is : Open
Krishna Murty
(Querist)
05 December 2013
Dear All
Mr.X is a partner in M/s.XYZ Enterprises.Mr.X transferred his personal Machinery and finance amount to the M/s.XYZ Enterprises at an equal cost of Rs.1 Cr.
Now the machine is working on behalf of the firm and getting income as hire charges.The firm is not having any bill against transfer of machinery and finance amount.
Now my query is, is it eligible to claim depreciation and finance charges on machinery in firm books.
Kindly clarify.
Dear All
Mr.X is a partner in M/s.XYZ Enterprises.Mr.X transferred his personal Machinery and finance amount to the M/s.XYZ Enterprises at an equal cost of Rs.1 Cr.
Now the machine is working on behalf of the firm and getting income as hire charges.The firm is not having any bill against transfer of machinery and finance amount.
Now my query is, is it eligible to claim depreciation and finance charges on machinery in firm books.
Kindly clarify.
CMA Ramesh Krishnan
(Expert)
05 December 2013
While transferring asset from the partners to partnership as capital contribution even if such assets not firm name, firm is entitled to claim the depreciation, since the property become property of firm as per transfer of property act.
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