DEPRECIATION
This query is : Resolved
sandeep sahu
(Querist)
23 November 2010
Is charging of depreciation mandatory under the comanies act and income tax act on the assets used in a project yet to commence commercial production ?
CA. Aryendra
(Expert)
24 November 2010
Firstly, it is mandatory for every company to provide for depreciation in the books of account before declaring dividend.
Income Tax:
As per explanation 5 of section 32: Deprciation provision sahll apply, whether or not assessee has claimed the deduction in respect of depreciation in computing his total income.
Income Tax:
As per explanation 5 of section 32: Deprciation provision sahll apply, whether or not assessee has claimed the deduction in respect of depreciation in computing his total income.
sandeep sahu
(Querist)
25 November 2010
Dear sir
I aked this question as it is a project stage and no question of income or dividend. please guide me whether depreciation can be charged to profit and loss account or not.
I aked this question as it is a project stage and no question of income or dividend. please guide me whether depreciation can be charged to profit and loss account or not.
CA Ayush Agarwal
(Expert)
18 December 2010
Depreciation is to be charged only when assets put to used.
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