asset < Rs 5000
This query is : Resolved
25 August 2010
Expert,
If 10 DVD writers are bought for 3500 each such that vendor issues one bill for 35000 then should this be capitalised or 100% depreciated as unit cost is 3500 < 5000.
thanks
kirti.
If 10 DVD writers are bought for 3500 each such that vendor issues one bill for 35000 then should this be capitalised or 100% depreciated as unit cost is 3500 < 5000.
thanks
kirti.
25 August 2010
yes. Since One writer value is less than Rs.5000, it can be depreciated 100 %
Message likes :
1 times
25 August 2010
Notwithstanding anything mentioned in this Schedule, depreciation on assets, whose actual cost does not exceed five thousand rupees, shall be provided at the rate of hundred per cent:]
Provided that where the aggregate actual cost of individual items of plant and machinery costing Rs. 5,000 or less constitutes more than 10 per cent of the total actual cost of plant and machinery, rates of depreciation applicable to such items shall be the rates as specified in Item II of the Schedule.
Notwithstanding anything mentioned in this Schedule, depreciation on assets, whose actual cost does not exceed five thousand rupees, shall be provided at the rate of hundred per cent:]
Provided that where the aggregate actual cost of individual items of plant and machinery costing Rs. 5,000 or less constitutes more than 10 per cent of the total actual cost of plant and machinery, rates of depreciation applicable to such items shall be the rates as specified in Item II of the Schedule.
Message likes :
1 times
25 August 2010
if dvd writer cost constitues more than 10% of the total cost of computer, then dep rate will be as per schedule i.e 60% not 100%
Message likes :
1 times
25 August 2010
Agreed with Mr. Bansal.
Basically... this provision for 100 % depreciation for assets costing less than Rs. 5000/- is meant for assets , which can be identified, independently. & the provision is for unit value of asset.
In cases, where the assets are to be fitted in some other assets, then this overall concept of 10 % of total value, concept comes in picture.
Basically... this provision for 100 % depreciation for assets costing less than Rs. 5000/- is meant for assets , which can be identified, independently. & the provision is for unit value of asset.
In cases, where the assets are to be fitted in some other assets, then this overall concept of 10 % of total value, concept comes in picture.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- TAN for Partnership
- Sales return eway bill
- Treatment of Pension ?annuity returns on PMVY
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Taxation on LTCG for property sold after 24JUL2024
- GST Registration Horse racing
- Small dealers gst returns filing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
