Depreciation
SRINIVASAN S V (24 Points)
18 December 2015
DEPRECIATION ON CAR FROM THE DATE OF INVOICE OR FROM THE DATE OF REGISTRATION. ANY CASE LAW ON THE SAME
SRINIVASAN S V (24 Points)
18 December 2015
Ruchi
(CA)
(1410 Points)
Replied 18 December 2015
The date the asset is put to use is relevant. Normally, registration is done before the delivery of car and in some cases even after the delivery of car. Invoice is usually drawn at the time of delivery. Hence, unless otherwise you have contrary to prove, date of invoice will be relevant and not the date of registration.
Abhishek Satam
(financial execetive )
(86 Points)
Replied 18 December 2015
date of invoice as if the regestration is done after the date of invoice because depereciation is charged from the date it was put to use and we cant use the cas unless it is registered( IT is my opinion, Plz correct me if i am wrong)
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 19 December 2015
Hello, The requirement of section 32 is that the vehicle must be owned by the taxpayer and not that the taxpayer must be a ‘registered owner’ of the same under the Motor Vehicles Act.
Kindly refer MYSORE MINERALS LTD (SC) judgment.
It is the date of invoice which has to be seen for the purpose of depreciation. Registration of vehicle is not determinative of ownership. Beneficial ownership is consider for claiming depreciation
Ankit Taprania
(CA FINAL )
(542 Points)
Replied 19 December 2015
Well , in your case Depreciation on vehicle will be allowed from the Date of invoice BUT it will not be allowed if it is not used in business ( even a single day use before 31 march is necessary ) and you cannot put a vehicle on road if it is not registered with RTO. so if the vehicle is get registered before 31 march claim from DATE OF INVOICE . otherwise in later assessment year
you need to have sufficient proof in terms of petrol bills etc. to prove that the vehicle was used for your business or profession before 31st March .
PULKIT BANSAL
(Student CA IPC / IPCC)
(243 Points)
Replied 19 December 2015
Date of invoice will be considered for this purpose
Jimmy Jhamb
(ARTICLE)
(29 Points)
Replied 19 December 2015
Kindly refer MYSORE MINERALS LTD (SC) judgment.
( Agree with Vishal Goel )
Nitin Chordiya
(CA final Student)
(264 Points)
Replied 19 December 2015
Date of Invoice will be relevant not the date of registration.
Nitin Chordiya
(CA final Student)
(264 Points)
Replied 19 December 2015
Date of Invoice will be relevant not the date of registration.
Ankit Taprania
(CA FINAL )
(542 Points)
Replied 19 December 2015
MYSORE MINERALS LTD (SC) has NO APLLCATION here because the fact the case are totally different .
MYSORE MINERALS LTD talks that after acquiring possession depeciation can be claimed on building not registered in name of the assesse .
ownership is not the only condition for depeciation use is also a main condition , now building must have been used for the purpose of business otherwise depreciation would not have been allowed . tell me this WAS THERE ANY CONDITION ON USE OF THE BUILDING for this purpose , the answer is no there is non.
but a VEHICLE CANNOT BE PUT ON ROAD ( for business / non business purpose) WITHOUT REGISTERING WITH RTO.
so in MYSORE MINERALS LTD condition of use is satisfied but in case of vehicle condition for use can't be satsfied . then explain how can you apply MYSORE MINERALS LTD.
Ankit Taprania
(CA FINAL )
(542 Points)
Replied 19 December 2015
Ankit Taprania
(CA FINAL )
(542 Points)
Replied 19 December 2015
Ashok J
(CA Final)
(880 Points)
Replied 20 December 2015
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