Depreciation on Car from invoice date or registration date

This query is : Resolved

Sundeep Kandoi (Querist)
Follow

04 July 2009 Hello,

Car invoice was raised in the company name on 31/03/2009.
The car was registered with RTO in the company name on 10/4/2009.

Query:
Can the company claim Half yearly depreciation on the car in the Fin. Yr. 2008-2009?

taxindiaconnect

taxindiaconnect (Expert)
Follow

04 July 2009 The deparecaition in case of a capital assets is available from the date the capital asset is ready for use. The registration for the car is not a prerequsiite for use of the car. A car can be used even without registration, hence in this depreciation can be claimed from the date of invoice, if the car was in usable condition, means the actula delivery has taken place and insurance etc. has statred from that day.

Guest

Guest (Expert)

04 July 2009 Agreed with Mr. Rajesh.

Furthermore, I would like to add one sentence in the above prase i.e., Possession, When you got actual possession of the capitalised assets (Car) then you can claim depreciation for the same from the date of possession.