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Costing

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(Querist)
05 January 2013 SIR,
KINDLY TELL ME, WHETHER WE HAVE TO CONSIDERED BOTH COMPONENT - DEPRECIATION OF VEHICLE AND INTEREST OF CAPITAL EMPLOYED IN THE ESTMATE OF HIRING OF VEHICLE.
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CS, Deepak Pratap Singh

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CS, Deepak Pratap Singh (Expert)
05 January 2013 Dear Friend, while calculating cost of capital , we have to consider both Depreciation as well as interest on borrowed capital. since both are deductible from revenue generated.Thanks
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RAJESH KUMAR AGARWAL

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RAJESH KUMAR AGARWAL (Querist)
07 January 2013 thank you sir.
kindly tell me for working out the estemated cost of hiring of vehicle for the year Whether we have to take both the component - depreciation on vehicle and interest on cost of vehicle or considered only any one out of depreciation and interest?
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