Depreciation for pre commercial operation
This query is : Resolved
16 December 2009
Hi Sir,
Could you please clarify
can depreciation be charged before commencement of business in case of a newly formed company??? if yes..then as there is no P&L a/c..the same would be treated as pre operative exp..isn't it???
Could you please clarify
can depreciation be charged before commencement of business in case of a newly formed company??? if yes..then as there is no P&L a/c..the same would be treated as pre operative exp..isn't it???
17 December 2009
No depreciation is charged till the assets (i.e. machines etc.) are put to use.
So either for the purpose of accounting or for income-tax you need not claim depreciation.
So either for the purpose of accounting or for income-tax you need not claim depreciation.
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