Depreciation

This query is : Resolved

Guest

Guest (Querist)

16 August 2013 Discount given by Seller has been deducted from Fixed Asset in Books of Accounts and Depreciation calculated accordingly.

Now for Income Tax purpose will it be deducted from Gross Block?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

16 August 2013 The amount AFTER discount will be capitalised in the books and the same amount shall be used for calculating depreciation as per Income Tax Act.

Guest

Guest (Querist)

16 August 2013 Gross Block as per books is existing and it is subsequent credit given by seller that is deducted from Assets in Books of Accounts..

Now should i also deducted it from Block for Income Tax purpose.

Aditya Agarwal

Aditya Agarwal (Expert)
Follow

16 August 2013 What is nature of Discount?

Is the discount on account of early payment?
or it relates the Assets directly?

Guest

Guest (Querist)

17 August 2013 It relates to Asset directly , So deducted as per AS 6, Now what to do for income tax purpose?

CA UMESH DULAL

CA UMESH DULAL (Expert)
Follow

19 August 2013 depreciation is to be charged on cost of assets (less discount) and other exp. incurred for the assets till put to use

Aditya Agarwal

Aditya Agarwal (Expert)
Follow

20 August 2013 Yes, I agree with CA Unesh Dulal.
You need to deduct the amount of discount for the purpose of calculating depriciation.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Nikhil Vyas

Navneet Pratap Singh

Rajesh Surapaneni

arya yashu

Amit

Subscribe Now

Depreciation

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

Senior Executive

Accountant

CA Final

GST CONSULTANT

GST CONSULTANCY