DEPRECIATION FOR LEASED ASSET

This query is : Resolved

Srivathsan (Querist)
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09 June 2010 AN ASSOCIATION HAS TAKEN A RENTED PREMISES FOR THEIR WORKING AND INCUR HEAVY EXPENDITURE FOR RENOVATION AND DECORATION.THESE EXPENSES HAVE BEEN CAPITALISED.CAN DEPRECIATION BE CLAIMED ON IT?
THANK YOU.

CA Ravi Kumar Murugesh

CA Ravi Kumar Murugesh (Expert)
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09 June 2010 Yes, surely they can claim depreciation on leasehold improvements.

CMA RV Padmakumar.A

CMA RV Padmakumar.A (Expert)
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09 June 2010 Yes for leased building capital exp can can claim depreciation..

Not for any other case...lessor has the right to claim depreciation in all other cases...

Circular no 2/2001 dated 09.02.2001