Depreciation

This query is : Resolved

VINITHA RAJESH (Querist)
Follow

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.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

shobi H

P.S.Satya narayana

SARAVANAN PALANISAMY

tsrandcompany@gmail.com

nandeesh mashyal

Subscribe Now

Depreciation

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

Senior Executive

Accountant

Manager- Finance and Compliance

GST CONSULTANCY

GST CONSULTANT