07-10-2009, 06:14 AM
Dear,
I just would like to rectify you with regards to the following matters,which you quoted, and unfortunately having misunderstanding.
<b>Your question about depreciation calculation</b>
Answer
This is a discussion forum for professional advises by members, and not for basic calculation for depreciation or valuation,which can be solved by the original poster himself by devoting his little time,
Your following questions, "<b>if u treating land and building as rent free accomodation" and "why u treating accomodation provided to director"</b>
Answer
I have already mentioned that these assets are property of company and will be shown to enhance its net worth, whether used by company or any of its employees, it will remain the property of the company and depreciation will also be charged in its accounts.
Your following quote, <b>"a person shall be allowed a deduction for the depreciation of the personâs depreciable assets used in the personâs business in the tax year"</b>, shows your misunderstanding with regards to the aforesaid,
It mean that Depreciation is allowed on depreciable assets, used by the person for his own business.
There is only one person.( do not treat it as "Two or more" person, if it is mentioned more than one time)
Your question regarding <b>partial use of depreciable asset</b>
Answer
Nevertheless, asset shall be treated to have been property of another,except company(in this case), If a company provides a car or accommodations to its employees then, these shall never be treated as asset of employee, rather they will always be treated as company's assets.
In this question, there is no concept of partial use of asset.
Your question regarding your views, "<b>in my view depreciation will be calculated as
500,000 x 20% x 6/365"</b>
Remember dear, Laws are never based on "your views" furthermore, this method( which you have mentioned) has been omitted by Finance Act 2004.( Exhibit the bottom line of the same page , from where you quote, i.e. page 38 of ITO 2008, available at FBR's website)
At last your question "<b>I QUOTE SUBSECTION (8) OF SECTION 13</b>"
Answer
There is again misunderstanding of your concepts,
This para indicates that "if an asset has been provided by a company to its employee at concession, then only such part shall be included in taxable income of employee, which has actually been borne by the company i.e. An asset of worth 10,000 has been given by a company to its employee at Rs. 2,000 then Rs. 8,000 ( bore by company)will be included in taxable income of employee.
Queries, not debate, will be appreciated
Very best regards,and very sorry, if any of my act hearted you.
Faisal Javaid.
I just would like to rectify you with regards to the following matters,which you quoted, and unfortunately having misunderstanding.
<b>Your question about depreciation calculation</b>
Answer
This is a discussion forum for professional advises by members, and not for basic calculation for depreciation or valuation,which can be solved by the original poster himself by devoting his little time,
Your following questions, "<b>if u treating land and building as rent free accomodation" and "why u treating accomodation provided to director"</b>
Answer
I have already mentioned that these assets are property of company and will be shown to enhance its net worth, whether used by company or any of its employees, it will remain the property of the company and depreciation will also be charged in its accounts.
Your following quote, <b>"a person shall be allowed a deduction for the depreciation of the personâs depreciable assets used in the personâs business in the tax year"</b>, shows your misunderstanding with regards to the aforesaid,
It mean that Depreciation is allowed on depreciable assets, used by the person for his own business.
There is only one person.( do not treat it as "Two or more" person, if it is mentioned more than one time)
Your question regarding <b>partial use of depreciable asset</b>
Answer
Nevertheless, asset shall be treated to have been property of another,except company(in this case), If a company provides a car or accommodations to its employees then, these shall never be treated as asset of employee, rather they will always be treated as company's assets.
In this question, there is no concept of partial use of asset.
Your question regarding your views, "<b>in my view depreciation will be calculated as
500,000 x 20% x 6/365"</b>
Remember dear, Laws are never based on "your views" furthermore, this method( which you have mentioned) has been omitted by Finance Act 2004.( Exhibit the bottom line of the same page , from where you quote, i.e. page 38 of ITO 2008, available at FBR's website)
At last your question "<b>I QUOTE SUBSECTION (8) OF SECTION 13</b>"
Answer
There is again misunderstanding of your concepts,
This para indicates that "if an asset has been provided by a company to its employee at concession, then only such part shall be included in taxable income of employee, which has actually been borne by the company i.e. An asset of worth 10,000 has been given by a company to its employee at Rs. 2,000 then Rs. 8,000 ( bore by company)will be included in taxable income of employee.
Queries, not debate, will be appreciated
Very best regards,and very sorry, if any of my act hearted you.
Faisal Javaid.
