depreciation on Industrial License
This query is : Resolved
05 April 2008
The company acquired industrial license from Govt to produce certain commodities. How to depreciates / amortised the license amount as there is no specific usage period. There is no specific rates in schedule XIV. Cost of License is in Lacs
S.Srinivasaraghavan
(Expert)
08 April 2008
How did the licence aquire cost?
13 May 2008
The company acquired industrial license from Govt to produce certain commodities. How to depreciates / amortised the license amount as there is no specific usage period. There is no specific rates in schedule XIV. Cost of License is in Lacs
CA. B.SRINIVASULU
(Expert)
26 January 2009
Generally there will not be any charge for issue of licence. If you have spent on administration or prepartion of application or survey that becomes your operating expenses.
On the other hand if you have paid any licence fee to the government and have receipt stating the licence fee then the value should be amortised based on the estimated no. of years you can utilsie the licence. If no particular years of validity is there, depending on managment perception the benefit for the number of years to be utilised has to be arrived at.
On the other hand if you have paid any licence fee to the government and have receipt stating the licence fee then the value should be amortised based on the estimated no. of years you can utilsie the licence. If no particular years of validity is there, depending on managment perception the benefit for the number of years to be utilised has to be arrived at.
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