Can depreciation on an asset be more than its purch price??


This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
12 July 2017 Say a company is a power generation and distribution company set up in andhra pradesh (notified backward area) it purchases an windmill whose deprecition rate is 80%, being a manufacurer it will get an additional depreciation on 35%.So total depreciation would come upto 105%.Is it possible or is there any provision restricting the deprecition upto the cost of the asset?


12 July 2017 Depreciation can not be exceed the purchase cost and incidental Exps not more than the cost.

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
12 July 2017 please mention relevant sections/case laws


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details