28 February 2020
Dear All, Please help with the following question quoting the relevant sections and provisions:- A Ltd. imported a capital asset into India on 24th February, 2020 for 10000 USD when the exchange rate was Rs. 70/USD. The company made the payment on 25th May, 2020 when the exchange rate was Rs. 72/USD. Compute the depreciation under IT Act for A.Y 2020-21 & A.Y 2021-22 assuming the rate of depreciation as per Rule 5 is 15%. The exchange rate as on 31st March, 2020 is Rs. 68/INR. Will the answer change: a) if the payment was made on 25th November, 2020? b) if the rate of exchange as on date of payment was Rs. 65/USD & as on 31st March, 2020 was Rs. 73/USD?
CAclubindia
