Depreciation
This query is : Resolved
16 February 2008
if we incurred capital expenditure for morethan Rs.20000 in cash, can depreciation be allowed on such asset?
16 February 2008
Yes,
Because the expenditure is allowable after paying tax on the same.
Because the expenditure is allowable after paying tax on the same.
17 February 2008
I agree..
Interpreting the law Strictly, depreciation is allowed, since Section 40A(3) is not applicable to payments made to acquire Capital Assets.
However, I think such Expenditure (Namely Depreciation) cannot be allowed as deduction, as it violates the basic motto of the section, i.e. to prevent large payments.
Interpreting the law Strictly, depreciation is allowed, since Section 40A(3) is not applicable to payments made to acquire Capital Assets.
However, I think such Expenditure (Namely Depreciation) cannot be allowed as deduction, as it violates the basic motto of the section, i.e. to prevent large payments.
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