At present in UNION BUDGET 2009-10 ( Dated: 6th July, 2009) they announced the Investment linked tax Incentives regarding the set up of "Businesses to be incentivised by providing investment linked tax exemptions rather than profit linked exemptions. Investment linked tax incentives to be
provided, to begin with, to the businesses of setting up and operating ‘cold chain’, warehousing facilities for storing agricultural produce and the business of laying
and operating cross country natural gas or crude or petroleum oil pipeline network for distribution on common carrier principle. Under this method, all capital
expenditure, other than expenditure on land, goodwill and financial instruments to be fully allowable as deduction".
Under this aspect we like to invest in Warehousing Facility but like to know is the depreciation i.e. 100% set off will be set off with the Warehouse( Sotrage) Income only or we can adjust from the other business profit in same books. Actually we are thinking to form new company for this warehouse to get this 100% Depreciation clause but it is fruitful only if the depreciation loss with be set off from other business profit in preceding year in same books of accounts.
Please give light to this matter your earlier & prompt reply will be highly appreciated.
Regards,
Sourabh Baheti
Since this issue involves investment of a good amount of money, I suggest you seek the advice of a qualified Chartered Accountant who is practising in tax matters.
Half baked knowledge and information may prove detrimental to your financial health.
| NIFTY 
