Depriciation

This query is : Resolved

rajesh (Querist)
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25 August 2009 Hello,
our client has following blcok of assets of vehicle @ 15 % as on 31.03.2008.

Scooter Rs. 2100
Opel Car Rs. 369803

During the year client has sold opel car for Rs. 175000/- and buy a new car worth rs. 750000/- on 31.01.2009.( which is qualified for depriciation @50 %).

My question is whether new car is qualifed for depriciation for each and every year @50% and whether the block of 15 % and 50 % is same or not?
How entry should be passed for sale of old car .. whether to pass entry for loss or it is to be clubbed in 15% blcok.

Thanks

vijay singhal

vijay singhal (Expert)
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25 August 2009 sale of opel car results in stcg (if deprciation was earlier provided).
depreciation should b provided @15% on wdv basis every year.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 August 2009 Assets having same rate of depreciation can only be added to the existing Block.

New Car is eligible depreciation @ 50%
(i.e. 25% if used for less than 180days) and
will form a separate block.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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27 August 2009 Depreciation on 2100+369803-175000 @ 15%
would be charged.

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