Intangible Assets...........Depreciation available in Income Tax Law in India

Intangible Assets………Depreciation available in Income Tax Law in India

In the era of Globalisation, business has become more knowledge based; giving more importance to intellectual property rights. Section 32(1)(ii) of the Income Tax Act 1961, was introduced in financial budget of year 1998, providing that depreciation would also be allowed on intangible assets; acquired on or after 1^st April, 1998.

Definition of Intangible Assets includes followings:

--Marketing rights

--Contract Rights

--Brand Name

--Know-how Patents

--Copyrights

--Trademarks

--Licenses

--Franchise

--Non Compete payments

--Tenancy Rights

--Membership Rights

--or any other business or commercial rights of the similar nature.

Goodwill is a bundle of rights which include, inter alia, patents, trade marks, licenses franchises etc. and they assume importance in commercial world as they represent a particular benefit or advantages or reputation built by a person / company / business house over a period of time and customers associate themselves with such assets; hence depreciation would be allowable on the same.

Authored by :

CA Yogesh
Director
BWPM Co.

visit us at : www.Yogesh-CA.blogspot.com

Solar Power Project................now with Investment Guru's

Traditional industry and economy suffering from lesser ROI statements by Investment experts in financial world; Solar Power projects have become hot cake with Investment Guru.

In the era of Green and Clean electricity; technology prices of Solar Panels and Equipments have drastically come down. Solar has not taking shape as an affordable investment project for Indian companies. Various Incentives, Power Purchase by Govt., supportive policies and awareness of business man with alternative / renewable energy is crowing meetings with Project Consultants to finalise Solar Project for various companies in India and abroad.

Financial attractions to set-up Solar Power Project:

--Lesser price of per MW installation

--Income Tax Benefits

--Depreciation Benefit

--Assured income with 25 years PPA

--Maintenance free project

--Green and Environment friendly project

--Leading companies in India providing full turnkey installation of Solar Project

--Higher Solar radiation in Western Rajasthan; specially in Jodhpur District

--Large number of Solar Projects working in Rajasthan

Solar Power Industry is getting bigger support by a number of deals done thru PE players with overseas funding. Most of the projects are sourcing funds for this project at very lower rate of Interest. Entry of global technical companies into turnkey installation of Solar Project has made this project bankable with easy and secure funding options.

contact:

CA Yogesh
Director
BWPM Co.

visit us at : www.Yogesh-CA.blogspot.com

(Author is an expert in consultancy and financing of Solar Power Projects in Rajasthan)