Depreciation
This query is : Resolved
01 November 2012
why not dep. on dustbin in small industry. but dep. on computer eligible, if industry have large scale turnover & computer cost is 0.005% of turnover. then eligible for depreciation on computer. why? what logic
22 November 2012
Depreciation is admissible on a CAPITAL ASSET. The proportion of expense to the turnover is NOT the criteria for calculating admissibility of depreciation.
If the expense results in acquisition of an asset, then depreciation shall be admissible.
Purchase of dustbin is a revenue expenditure, whereas purchase of computer is a capital expenditure.
If the expense results in acquisition of an asset, then depreciation shall be admissible.
Purchase of dustbin is a revenue expenditure, whereas purchase of computer is a capital expenditure.
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