Depriciation

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Querist : Anonymous

Querist : Anonymous (Querist)

01 November 2012 i am a proprietor of retailer business. i want to know if i am not charging depreciation on assets for not reducing my profit. do i am right to do like this or not ?

thanks in advance

@VaibhavJ

@VaibhavJ (Expert)

01 November 2012 Hi,

Depreciation is mandatory from AY 2002-03 and shall be allowed or deemed to have been allowed irrespective of claim made in the profit & loss account or not.

Few deduction under Ch.VI-A is not allowed when depreciation is not claimed.

Rgds//Vaibhav
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Querist : Anonymous

Querist : Anonymous (Querist)

01 November 2012 if i have not charged in p&L. do its allowed or not ? i want to put my asset on actual value

thanks

@VaibhavJ

@VaibhavJ (Expert)

01 November 2012 Hi,

No harm in that..

Rgds//Vaibhav
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Querist : Anonymous

Querist : Anonymous (Querist)

01 November 2012 if bank ask for the reason why you are not charging depreciation on your assets, what kind of answer i have to give for my loan sanction.

please kindly guide me

@VaibhavJ

@VaibhavJ (Expert)

01 November 2012 Hi

You can make provision as low as 2-5% to avoid such questions by banks or such other external parties.

Rgds//Vaibhav
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Querist : Anonymous

Querist : Anonymous (Querist)

01 November 2012 ok...i will do but right now my file is on the way so please tell me the reason which i really wants to give to the manager for my non depreciation issue...

@VaibhavJ

@VaibhavJ (Expert)

01 November 2012 Hi

Can you give me the aprox Value of Asset & Dt. of Purchase.

Rgds//Vaibhav
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