Additional depreciation

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2014 During F.Y 2012-13 machines worth Rs.45,50,000 were purchased but not installed.During F.Y 2013-14 Plant worth Rs.48,25,000 was purchased.Both the plant & Machinery were installed in 2013-14 and commercial production started on 15/05/2013.
Question: For Additional Depreciation whether i shall be eligible on Rs.93,75,000 ( 45,50,000+43,25,000) or only on Rs.48,25,000???

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

11 September 2014 yes even if installed u are eligible for the same

Ganeshbabu K

Ganeshbabu K (Expert)

11 September 2014 Ans. You are eligible for total value of machinery installed during previous year

Yes you can claim Additional depreciation in the year in which installation is completed.

Yes.Date of completion of installation is relevant and not the purchase date for claiming additional depreciation.

Hope you have installation certificate from chartered engineer or the person who installed the machinery in your factory
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to confirm date of installation.
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Installation certificate generally contain words like,

Installation is completed in all respects and machine is ready for commercial production and it is dated..XXXX

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