Depriciation problem

368 views 5 replies
(1) if P&M sold then dep allowed or not in that P.Y.?

(2) if P&M transfer in case of amalgamation/succession.
is DEPRICIATION Allowed ?
Replies (5)
1) no.
2)yes , to amalgamated company on basis of days .
1. Reduce sale consideration from block of assets only and then apply depreciation rate. 2. In case of amalgamation and succession depreciation value is to be share proportionately on the basis of number of days by both the companies.

In first case depreciation cant be claimed in second case since its amalgamation so the amalgamator is not fully distinguish of his / her right so its not included in definition of transfer and hence depreciation can be claimed

1. First thing Depreciation is not Calculated on the sale of any assets rather it is calculated only on the year end and the balance amount of BLOCK. If the entire block is finished due to sale then depreciation is not Calculated rather Capital Gain is Calculated.

2. In case of Amalgamation:

Depreciation is Calculated on the number of days the assets has been used between Amalgamating and Amalgamated co.
1) Depreciation is not allowed.
2) Depreciation is allowed on the basis of number of days the assets.

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