Depreciation for Machinery
This query is : Resolved
28 May 2010
Machinery was purchased in April and it was returned back to vendor in december , whether for this depreciation has to be calculated
28 May 2010
NO.
Rahul Gupta
(Expert)
28 May 2010
Depreciation is available only if the asset has been put to use. If you have used the machinery for your business, then only the you are eligible to claim depreciation.
28 May 2010
AGREED WITH MR. RAHUL.
IF MACHINE IS PUT TO USE , THEN YOU WILL BE ELIGIBLE TO CLAIM DEPRECIATION AS PER COMPANY ACT.
BUT AS PER INCOME TAX , NO DEPRECIATION WILL BE MADE, IF ASSET IS SOLD DURING THE SAME YEAR IN WHIHC IT IS PURCHASED.
IF MACHINE IS PUT TO USE , THEN YOU WILL BE ELIGIBLE TO CLAIM DEPRECIATION AS PER COMPANY ACT.
BUT AS PER INCOME TAX , NO DEPRECIATION WILL BE MADE, IF ASSET IS SOLD DURING THE SAME YEAR IN WHIHC IT IS PURCHASED.
28 May 2010
AGREE. MY ANSWER WAS FROM IT POINT OF VIEW.
THANKS ALL FOR ELABORATION.
THANKS ALL FOR ELABORATION.
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