Who charge Depreciation?
Abhishek Kumar (46 Points)
19 July 2021in this situation who charged the depreciation?
Abhishek Kumar (46 Points)
19 July 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 19 July 2021
Depreciation is allowable only to the owner of the asset. In case of co-ownership, depreciation is allowable in ratio of their ownership. This means, tax depreciation can be claimed by your owner if he purchased it from his account. No transfer the company money to his account and the company is entitled for depreciation.
prasad Nilugal
(3914 Points)
Replied 19 July 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 19 July 2021
My opinion above was the same and legal documentation can be used to transfer the asset into company name by transferring money from company account to directors account.
Abhishek Kumar
(46 Points)
Replied 19 July 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 19 July 2021
Tax depreciation cannot be strictly claimed. @ Abhishek Kumar . Next, transfer of property will take place within one year or else, the company can never claim depreciation
CA Rashmi Gandhi
(Chartered Accountant)
(86318 Points)
Replied 20 July 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 20 July 2021
Can used machinery purchased? Is there any tax law that new machinery is carried and not second hand? If not, simple transfer of ownership will be sufficient.
CA Rashmi Gandhi
(Chartered Accountant)
(86318 Points)
Replied 20 July 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 20 July 2021
Txs. Company can acquire the asset at lower of cost or fvlcd. RTA India can transfer registration to company name. Nrv is going to win because no value for seconds even after a months usage. The company can include this as an opportunity cost embedded into product price
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 20 July 2021
I meant more depreciation can be claimed at cost
CA Rashmi Gandhi
(Chartered Accountant)
(86318 Points)
Replied 21 July 2021
Live Course on Invoice Management System (IMS) - 2nd Batch(With Recording)