Depreciation on building

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 October 2016 Dear Experts,
Factory building value is 12300000/-
However certified valuer has valued as
90 Lakh land value and 33 Lakh construction value. My query is weather we need to show only 33 Lakh or full 12300000/- in books of accounts for depreciation purpose as per IT act. Also let me know the percentage of dep on building.

Thanks & Regard
Karan Desai

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

22 October 2016 you have to depreciation as per Actual Building Construction Cost 5%, Land and Building Separately Booked in order to calculate Depreciation.

Querist : Anonymous

Querist : Anonymous (Querist)

22 October 2016 Sir,
Do we need to show both land and construction cost in books if yes weather we can charge dep on land value if how much percentage