Reg forex loss on capital asset & depreciation
This query is : Resolved
14 March 2014
Hi
If a person has brought a machinery in FY 12-13, the same was put to use in same year. In FY 13-14, he incurred a forex loss while making the payment. He have to capitalise that expenditure. Now my query is, if the machinery was eligible for additional depreciation in FY 12-13, then can Forex loss capitalised be eligible for additional deduction in FY 13-14?
If a person has brought a machinery in FY 12-13, the same was put to use in same year. In FY 13-14, he incurred a forex loss while making the payment. He have to capitalise that expenditure. Now my query is, if the machinery was eligible for additional depreciation in FY 12-13, then can Forex loss capitalised be eligible for additional deduction in FY 13-14?
14 March 2014
Yes. The additional payment required to be made to supplier on account of rupee devaluation will qualify for increase of cost of machinery.
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