Hello Friends,
I need your help !
Regarding claiming of deprecation in the case of LLP
Partners’ are also owning fixed assets like computer, printer etc bought in their name before the formation of LLP and have been using it for personal use. From the income tax point of view, an asset should be purchased in the name of the LLP to claim lawful depreciation right? But in this case, can the partners’ bring in or sell their assets to LLP at a nominal price to LLP through meeting and recording it in minutes, the type and value of assets sold. Can this be taken as the cost of the asset and depreciation be claimed on that asset for income tax purpose? Or is it necessary that only original purchase of assets in firm’s name is allowed?
Can the partners’ also sell the assets for which they don’t have the original bills purchased by them?
Thanks in Advance :)
CAclubindia
