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
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- TDS Challan Code
- Relief u/s Section 89
- Nomination of Bank for refund in itr 2
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- STCG on ETF gold & silver
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
