Meaning of  "Actual Cost",  "Paid",  "Plant" - (New) Section 39 / (Old) Section 41(1), (2) and (3)

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....nbsp;part of cost of asset, if any, met by any other person or authority, directly or indirectly; • (b) GST Input Tax Credit (ITC) • goods and services tax paid in respect of which credit of input tax has been claimed and allowed under the relevant law; • (c) Excise/CVD credit • duty of excise or additional duty leviable under section 3 of the Customs Tariff Act, 1975 in respect of which a claim of credit has been made and allowed under the Central Excise Rules, 1944; • (d) Subsidy / Grant / Reimbursement • subsidy, grant or reimbursement, by whatever name called, if any, relatable to the acquisition of the asset, received, directly or indirect....

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....ed by Deprication • (a) that would have been allowable had the building been used for the purpose of business or profession from the date of acquisition; and • (b) calculated at the rate in force on the date on which such asset was put to use for the purpose of business or profession. 6 Transfer between holding & subsidiary Same as transferor company, if the transferor company had continued to hold such asset for the purpose of its own business. 7 Reacquired asset Lower of (a) and (b) • (a) Actual cost of the asset in the hands of assessee, when it was first acquired, as reduced by- • (i) depreciation actually allowed in respect of tax year commencing on 1st....

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.... 10 Asset brought to India by non-resident Actual cost of the asset as reduced by the depreciation-- • (a) that would have been allowable had the asset been used for the purpose of business or profession in India since the date of its acquisition; and • (b) calculated at the rate in force. 11 Stock exchange corporatisation Actual Cost as if no corporatisation 12(a) Deduction under Section  46 claimed in respect of the capital asset- (i) to the assessee; or (ii) to any person and the assessee acquires or receives such asset through special modes of acquisition from such person. Actual cost = NIL "Special Modes of Acquisition" means acquisition- • (a) by wa....

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....e from profits and gains of business or profession. Actual cost means the actual cost of the asset to the assessee, reduced by that • portion of the cost which has been directly or indirectly met by any other person or authority provided • assessee incurs an expense for which payment is made in a day otherwise than by an account payee drawn or account payee bank draft or use of electronic clearing system through a bank account or such other electronis mode as may be prescribed exceeding 10,000/-, then such expenditure shall be ignored for the purposes of determination of actual cost.  Explanations to Section 43(1) Determination of Actual Cost in special cases Expl. to  Sect....

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.... the notional depreciation calculated up to the year of bringing the asset to business use at the depreciation rate applicable to that year.  6 & Exp. 2 to Section 43(6) Asset transferred by a holding Co. to its subsidiary Co. or vice versa if the following two conditions are satisfied: • Shares of the subsidiary Co. should be wholly owned by the holding Co. or its nominees. • The transferee Co. should be an Indian Company.  WDV to the transferor company at the beginning of the previous year will be taken as the actual cost to the transferee company. 7 & Exp. 2 to Section 43(6) Transfer of asset in a scheme of amalgamation by amalgamating company to amalgamated Indian company. WDV to the....

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.... used in India since the date of acquisition. 12 Any capital asset acquired under a scheme of corporatisation of a recognized stock exchange (AOP/BOI to company) in India, approved by SEBI The amount, which would have been regarded as actual cost, had there been no such corporatisation shall be deemed to be the actual cost. 13 Actual cost of capital asset has been allowed as deduction under section 35AD and capital asset is transferred to non-specified business after 80years from the year of acquisition or transfer by way of transactions referred to in Section 47. The actual cost of such asset to the transferee shall be Nil. Provided where the capital asset on which deduction u/s 35AD is allowed is deemed to be the....