capitalisation of assets
This query is : Resolved
06 February 2011
10 fan @ 3000 each purchased=30,000
company act= capitalise if more than 5000
query
1.value of 5000 taken per fan or total purcahse invoice basis ?
2.procedure of 100% depreciation taken?? either in fix asset and depreciation shown in dep chart
or
to be taken as eletricity exp ??
company act= capitalise if more than 5000
query
1.value of 5000 taken per fan or total purcahse invoice basis ?
2.procedure of 100% depreciation taken?? either in fix asset and depreciation shown in dep chart
or
to be taken as eletricity exp ??
06 February 2011
Proviso to note 8 of schedule XIV of the Companies Act,1956 is reproduced below.
[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.]
From a reading of the above the conditions to be satisfied are:-
1) Items purchased should be plant and machinery.
2) If consists of more than one unit, Rs. 5,000/-is for the aggregate cost of all units purchased.
In view of the above, my understanding, is 100% depreciation cannot be availed in the cited issue.
[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.]
From a reading of the above the conditions to be satisfied are:-
1) Items purchased should be plant and machinery.
2) If consists of more than one unit, Rs. 5,000/-is for the aggregate cost of all units purchased.
In view of the above, my understanding, is 100% depreciation cannot be availed in the cited issue.
Message likes :
2 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
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR returnFY25-26
- ITR selection for salaries and capital gain less than L
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR 1: Details for showing Exempt Income
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Share accounting-->fifo - capital gain - period as per fifo?
- Reporting Income under Section 44ADA
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- 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
- Tax amount diff in Gstr1 and 3B in tax compare reports
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
