Depreciation
This query is : Resolved
25 January 2012
Hi,
A company has bought lot of books for their reference. 50% of them are subject books which will be used for the development of the business and the balance 50% are management books which will be kept in the library of the company.
Can the subject books be treated as asset?
As per IT Act, depreciation rate for such books is 60%, but Companies Act do not specify the rate.
Can the books to be kept in library be written off as expenses.
Please advice and give comments.
A company has bought lot of books for their reference. 50% of them are subject books which will be used for the development of the business and the balance 50% are management books which will be kept in the library of the company.
Can the subject books be treated as asset?
As per IT Act, depreciation rate for such books is 60%, but Companies Act do not specify the rate.
Can the books to be kept in library be written off as expenses.
Please advice and give comments.
25 January 2012
Subject as well as library books are to be treated as revenue expenditure. Capitalization of books for the purpose of income tax is applicable in the case of 'profession'only.
Ps:- An incorporate body (company) can't do profession.
Ps:- An incorporate body (company) can't do profession.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Building and other construction workers welfare cess act 1996
- Eway bill for machinery reparing
- Bank Accounts in Balance Sheet for ITR 3
- Gift of mutual fund units to daughter
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Form 10BD Filling
- Pan Card apply for Self help group
- Reporting of STCG on Property in ITR
- Error while filling exam form November 2026
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
