Depreciation Charged on Land
This query is : Resolved
31 July 2008
A company constructs a building on its own land , and then capitalise both ,and charges depreciation on entire value.
Now it wants to write back the depreciaton on land.
Can it Do so?
Is there any Case Law Regarding this.
Now it wants to write back the depreciaton on land.
Can it Do so?
Is there any Case Law Regarding this.
31 July 2008
Capitalised both under what head? Obviously land can not be capitalised under any head other than land!
31 July 2008
it was caitalised under building
31 July 2008
you will segrigate the same show different heads & dep will not be allowed on land
31 July 2008
actually when the land was purchase that time it has not been entered into the books and the whole value together with the value of land was capitalised with building A/C and depreciation ws charged accordingly .
it was purchased in 1990 for 90 lacs and now the WDV is 60 lacs nw i want to write off the value of BUILDING frm WDV coz i want to reconstruct a new building on the same land??????????
in case i dont know the actual cost of the land so how should i compute thaht?
it was purchased in 1990 for 90 lacs and now the WDV is 60 lacs nw i want to write off the value of BUILDING frm WDV coz i want to reconstruct a new building on the same land??????????
in case i dont know the actual cost of the land so how should i compute thaht?
01 August 2008
The actual cost of the land would have been declared in the valuation report of the registering authority. Based on that you can reinstate the value of land by writing back the depreciation thereon.
04 August 2008
thank you
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