Derpreciation on Fixed Asset

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Viral M Shah (Querist)
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23 March 2009 There is an fixed asset machinery which was been dismentaled from one factory & shifted to another factory in the same company ,but still it is not been reinstalled, so can I claim the depreciation for that part of the period after which it was dismentaled & till it is reinstalled , as per companies Act & Income tax act. & what if reinstallation does not take place during one accounting year (ie. it is keept in store room)

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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23 March 2009 Yes you can.

CA JAIMIN TRIVEDI

CA JAIMIN TRIVEDI (Expert)
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23 March 2009 Yes

CA JAIMIN TRIVEDI

CA JAIMIN TRIVEDI (Expert)
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23 March 2009 Yes

Viral M Shah

Viral M Shah (Querist)
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23 March 2009 Thanks for your reply but let me knwo what will it happen if the manchinery earlier used has been kept in store room for the whole accounting year. so let me know the answer as per comapnies act & Income Tax

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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23 March 2009 As per Income Tax: You have to provide depreciation.

As per Compnaies Act: You have option not to provide Depreciation, but in such a case you have to provide entry for dismentaled.

If not installed in one accounting year, then also you have the same option.

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