Depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2015 If any plant & mach. (for eg. vehicle) is transferred on the last day of the previous year eg. on 31.3.2015 after using it for the whole year.
whether the assesse can claim depreciation in computing net profit.?

Whether there would be different situation if the firm is computing dep. on block of assets method or individual assets wise.

Thanks in advance.

Vishrut Shah

Vishrut Shah (Expert)
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12 May 2015 Depreciation is always considered at the time of transfer of assets to calculate the profit / loss on sale of assets so its effect will any way come in either of the case.

It will not make much difference. except profit or loss elements on transfer of assets if either of the method is followed.

Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2015 Thank You Sir.

If wdv as on 1.4.14 was 500000/- and vehcile was tfd on 31.3.15 for 425000/-.

So whether we should take depreciation @ 15% on 5 lac at 75000/- and put it zero as on 31.3.15 or
we should claim loss on sale of asset at rs.75000/- and do not claim depreciation.

Please clerify.

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Vishrut Shah

Vishrut Shah (Expert)
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12 May 2015 In your case Depreciation shall be Rs. 75,000/- and profit/ loss on sale of asset shall be Rs. NIL.