subscriptions and periodicals

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Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2011 In case of a profession ,subscriptions and periodicals can be claimed as asset or not, can we claim depreciation on that asset.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 July 2011 In case of profession -
Subscriptions are paid in advance to the publishers. According to the No of months falling in the current year it can be treated as fixed assets for the purpose of claiming depreciation.
The balance lying with the subscriber may be treated as amount advanced.
The rates for Depreciation on the above items will be 100%.
.
In case of books other than the annual publications the rate of depreciation is 60%.

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