Depriciation

Save Share

This query is : Resolved

rajesh (Querist)

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)

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)

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)

27 August 2009 Depreciation on 2100+369803-175000 @ 15%
would be charged.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now