Charging of Depreciation

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Raj Dutta (Querist)

07 September 2009 A pvt ltd co has discontinued its manufacturing activity from 1/04/2006
WDV of Machinery(15%) as on 31/03/2006 Rs 120000/-
Again from 1/04/2008 the co has restarted its operation .
now my question is ,whether Depreciation is to calculated on Rs 120000/-
or after deductind depreciation for 2 years from WDV as was on 31/12/2006

please suggest

Raj Dutta
Kolkata
vkj.kol135@gmail.com

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

07 September 2009 If the assessee is a company then eventhough not utilised you have to provide depreciation every year and only on reducted value you have to provide depreciation.

In case of individual and partnership you need not provide depn if you are not utilising the asset.

CP Ram

CP Ram (Expert)

07 September 2009 For depreciation Rs.120000 should be considered as WDV for income tax purpose..

CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)

07 September 2009 you have to provide depreciation every year. As per incometax wdv. 73695 and in books of account depend on which method you follow wdv or slm.

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