does proprietorship firm can pay rent on buliding owned by proprietor if business is carried on it.
Does that firm can claim depreciation on it?
7 Replies
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 26 August 2010
proprietorship firm can pay rent but can not claim depreciation
CA. BIJENDER KR. BANSAL
(ACA, B.COM)
(8148 Points)
Replied 26 August 2010
In case of proprietorship, rent also can't pay for building owned by proprietor.
Proprietorship belong proprietor , proprietor is assessable for this firm, if you pay rent , then it is taxable in his hand, i.e you pay rent for your property yourself .
mehul kishnani
(student)
(264 Points)
Replied 26 August 2010
Agree with Mr Bansal, in that final tax is going to be calculated on your total income i.e profit from business + rent
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 26 August 2010
Dear Friends,
Proprietorship firm doesn't have the seperate identity seperate from it's proprietor. Thus, if the propritor has invested his own property in business, it will be deemed to the [property of proprietory firm and thus, proprietiry firm cannot claim rent on his own property. However, he can claim the depreciation as per the rates in force as per Income Tax Act, 1961.
Ragards,
Manoj
CA Chirag Haraniya
(Chartered Accountant)
(902 Points)
Replied 27 August 2010
Agree with bansal and manoj..........
CA Final
(CA Final Student)
(856 Points)
Replied 27 August 2010
No firm can't claim depreciation on it............
Mayur Arora
(CA Final)
(295 Points)
Replied 27 August 2010
No, Proprietor can't give rent to himself but he can claim depreciation on it.
Recent Topics
- Authorization operate bank accounts signing
- Form 15CA for amount transfer
- TDS on March 25 Provisions
- Role of AI in CA Field
- How to generate purchase bills to investor for bil
- Composition scheme and Itc
- Has anyone tried Parag Gupta sir's 59 questions fo
- HSN CODE IS MANTADARY
- Gst number revocation chances
- Export under IGST Paid
Related Threads
CAclubindia
