Depreciation
This query is : Resolved
26 June 2011
1) Company purchase a machine , the purchase price includes Machine value + Excise duty + CST + Freight.
please inform me the depreciation should be charged on the basic machine value or the total bill value .
2) Manufacturing company purchase a machine ,but production will be started after 3 months. Company has a two factory , the machine purchase for new factory.
What will be the depreciation .
please inform me the depreciation should be charged on the basic machine value or the total bill value .
2) Manufacturing company purchase a machine ,but production will be started after 3 months. Company has a two factory , the machine purchase for new factory.
What will be the depreciation .
U S Sharma
(Expert)
26 June 2011
1) on the capitalized value the depriciation is available, it may be with freight or without freight.
2) depriciation available from the date of 1st trial production date.
2) depriciation available from the date of 1st trial production date.
CA. Krishna K Neeraj
(Expert)
27 June 2011
1) Depreciation will be charged on total invoice value +freight, paid if any - cenvat credit on capital expenditure taken, if any
2) Depreciation will be available from the date machinery will be ready to use/put to use.
2) Depreciation will be available from the date machinery will be ready to use/put to use.
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