07-08-2009, 04:47 AM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Queries</i>
<br />Dear faisal i feel ur treatments are in contrast with each other.
In accounting you are saying that all assets should be capitalised but in tax you are saying that these should be treated as salary of director.
if these are treated as assets in accounting then depreciation should be allowed to company in tax as well.why u treating assets as salary of director in tax and as assets in accouting.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear,
Sorry to say, but in my opinion, you need to read my last post again, as i mentioned "All those facilities, which are being used by the director will be dealt as per section 149 and be considered as perquisites to the director while calculating his taxable income"
This means that, all the facilities will be treated as Furnished Accommodation for the purpose of Director's taxable income and be treated accordingly. I have nowhere mentioned that Assets should be treated as salary of the director, as you said.
Remember, Assets will remain the property of company in either case.
Furthermore, for your information, in reply of your last para, (if these are treated as assets in accounting then depreciation should be allowed to company in tax as well) This is not necessesary that if an asset is subject to depreciation for financial reporting purpose, this is also be allowed for Tax purpose and vice versa , some time Tax authority does not recognize an asset for depreciation , also, there is a differentiation of method of depreciation and timing of recognization for Financial reporting and Tax purpose and they can not be complected with each other.
Regards,
<br />Dear faisal i feel ur treatments are in contrast with each other.
In accounting you are saying that all assets should be capitalised but in tax you are saying that these should be treated as salary of director.
if these are treated as assets in accounting then depreciation should be allowed to company in tax as well.why u treating assets as salary of director in tax and as assets in accouting.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear,
Sorry to say, but in my opinion, you need to read my last post again, as i mentioned "All those facilities, which are being used by the director will be dealt as per section 149 and be considered as perquisites to the director while calculating his taxable income"
This means that, all the facilities will be treated as Furnished Accommodation for the purpose of Director's taxable income and be treated accordingly. I have nowhere mentioned that Assets should be treated as salary of the director, as you said.
Remember, Assets will remain the property of company in either case.
Furthermore, for your information, in reply of your last para, (if these are treated as assets in accounting then depreciation should be allowed to company in tax as well) This is not necessesary that if an asset is subject to depreciation for financial reporting purpose, this is also be allowed for Tax purpose and vice versa , some time Tax authority does not recognize an asset for depreciation , also, there is a differentiation of method of depreciation and timing of recognization for Financial reporting and Tax purpose and they can not be complected with each other.
Regards,
