Depreciation of Building
This query is : Resolved
23 July 2024
Greetings,
I would like to inform that as per company act depreciation on factory building useful life is 30 Years. Company has freedom to reduce the time if 2/3 shift working at factory premises. Company has been charging depreciation as per useful life of assets 30 Years since last 12 years. Where building construction on plot on lease. Lease from group of company. Lease period is 10 years.
Now New internal auditor pointed out that lease is 10 years then useful life of building should be 10 years not 30 years which is charged depreciation since last 12 years. Our statutory audit is big-4 .
My Query is can I change % depreciation rate and reduce useful life of assets from 30 years to next 10 years.
I have raised a query only in point of view of Company Act and Not income Tax act point of view.
Can you help me?
Regards,
Choudhari
I would like to inform that as per company act depreciation on factory building useful life is 30 Years. Company has freedom to reduce the time if 2/3 shift working at factory premises. Company has been charging depreciation as per useful life of assets 30 Years since last 12 years. Where building construction on plot on lease. Lease from group of company. Lease period is 10 years.
Now New internal auditor pointed out that lease is 10 years then useful life of building should be 10 years not 30 years which is charged depreciation since last 12 years. Our statutory audit is big-4 .
My Query is can I change % depreciation rate and reduce useful life of assets from 30 years to next 10 years.
I have raised a query only in point of view of Company Act and Not income Tax act point of view.
Can you help me?
Regards,
Choudhari
24 July 2024
You can extend the lease.
If lease not extended you can sell the building as life of the building will be 30 years.
If lease not extended you can sell the building as life of the building will be 30 years.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN REDEVELOPED FLAT
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- REGARDING ITR FILING QUESTION
- ITC BENEFIT ON BROKRAGE PAID
- TDS refund Indemnity Bond
- DUE DATE FOR ITR FILING
- Query regarding TDS on EPFO Higher Pension Arrears- under wrong section
- GST ISD Query on various AMCs
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
