13 September 2010
Please provide the suggestion regarding the depreciation
if we purchase a Commercial VEHICLES ON DATED 01.02.2009 AND THIS HAS ALREADY BEEN USED AT THAT TIME AND WE HAVE CHARGED 50% RATE OF DEPRECIATION AND NOW WE ARE CHARGING AGAIN 50% DEPRECIATION ON FINANCIAL YEAR09-10. AM I CORRECT OR NOT pLEASE GUIDED ME .
13 September 2010
As per Section 32 depreciation in Income tax is allowed on WDV as at March 31 of respective previous year. If any asset is sold before it, depreciation for that year can not be claim. So in your case depreciation will not be provided to earlier owner. However, you will be entitled to claim depreciation
13 September 2010
There was a circular regarding allowing commercial vehicles to get higher rate of depreciation. U can refer to it. It is available on www.incometaxindia.gov.in
14 September 2010
Circular regarding getting higher rate of deprecaition is for commerical vehicle acquiring after 1/01/2009 before 30sept 2009. It is only for first year in which vechile purchased. afterward normal deprecaiton will be allowed.
14 September 2010
You can charge depreciation @ half of rate of dpreciation as the assets is put to use in the first year less than 180 days. On wards you can charge full rate of depreciation . Also you can claim in the first year the additional rate of depreciation.
CAclubindia
