Depreciation

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Debashis Mandal (Querist)
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29 January 2010 Respected Sir,
If an asset is purchased for Rs.700000 & payment is made by bank Rs.600000 & balance Rs.100000 is made by Cash & such asset is used for Business then Can Depreciation be claimed for entire Rs 700000 or not.
Thanks
Debashis

CA.Pujah

CA.Pujah (Expert)
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29 January 2010 If you have actually incurred Rs.7 lac why would you claim depreciation for 6 lacs.
See, You need to have a prima facia evidence i.e, a cash receipt of Rs.1.0 lac.
If you have it you should show your asset at 7.0 lac & claim depreciation thereon.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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29 January 2010 Cost of asset is Rs.700000. As such depreciation is to be claimed on the full cost irrespective of source of funds whether own or borrowed.

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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29 January 2010 agree with experts

Padmaja CA

Padmaja CA (Expert)
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29 January 2010 in case of fixed assets there is no diff on cash payment.Frist you must concentrate on that fixed asset Invoice value 7 LACs and then u concentrate on payment receipts(both cash and bank) its enough for clime on 7lacs value

Debashis Mandal

Debashis Mandal (Querist)
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30 January 2010 Respected Experts
Thanks to every one for your answers
Debashis

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