Dep on Assets purchased during the year
This query is : Resolved
27 June 2009
As per Companies Act, for New Assets purchased during the year costing less than Rs 5000, dep shall be charged 100%. Now,
a) THis 100% means that Asset be fully depriciated during the year of purchase or dep shd be charged at 100% for the no of days Asset has been used?
b) If there is purchase of say 10 chairs each costing Rs 3500/- totalling Rs 35000/-. Out of them only 5 chairs have been put to use during the year. Now what & how should the dep be charged over this purchase transaction?
a) THis 100% means that Asset be fully depriciated during the year of purchase or dep shd be charged at 100% for the no of days Asset has been used?
b) If there is purchase of say 10 chairs each costing Rs 3500/- totalling Rs 35000/-. Out of them only 5 chairs have been put to use during the year. Now what & how should the dep be charged over this purchase transaction?
28 June 2009
Dear
a) the intention of law is very clear as this cluse is provided in proviso of note no.8 of sch. no. xivth and the provision of dep. on the basis of no. of days is given in note no.4 of the same.later provisions have overriding effect on earlier so full dep. will be provided in the year of purchase itself.
b) each chair is separate useable and is a asset individually so we can writeoff the assets of all chaires in the year of purchase.
a) the intention of law is very clear as this cluse is provided in proviso of note no.8 of sch. no. xivth and the provision of dep. on the basis of no. of days is given in note no.4 of the same.later provisions have overriding effect on earlier so full dep. will be provided in the year of purchase itself.
b) each chair is separate useable and is a asset individually so we can writeoff the assets of all chaires in the year of purchase.
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
- Fixe term employment
- Is any professional CA is here please reply
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Putting a heading on received mail
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Section 50-fixed asset-->building ceases to exist
- Experts need help
- Gift Received from nonblood relative
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
