a company purchased asset costing rs 50000 on 15 jan 2001 and incurred installation expense rs 5000 on rs 20 jan 2011 .as per company act dep is charged from the date asset is acquired and not from the date asset is put to use .my query is regarding amount on which dep is charged either on rs 50000 from 15 jan or rs 55000 from 15 jan
Menu
Depreciation
Replies (6)
DEpreciation will be charged on Rs.55000 from 20th Jan as asset was ready to use only after installation.
agree with above depreciation will be charged on asset on put to use i.e installation date
I agreed
i also agreed
Yes, depreciation will be charged from 20th Jan 2011 on Rs. 55000/-
The relevant date for charging depreciation is the date on which the asset is ready for use. Put to use date is irrelevant for depreciation purposes. In the above case, the asset cannot work unless it is installed. Thus, 20 Jan is the date on which the asset is ready for use and the relevant depreciable amount is INR 55,000.
Recent Topics :
- Sale of shares in indian company by a non resident
- Difference in TIS
- GSTR-9C Upload Status Error Occured
- “Income Tax Implications of Company-Related
- Advice needed: Hypothetical case of non-filing of
- Demand Raised for Cess Amount Despite Section 89 R
- WRONG BILL NO FILED IN GST R1
- Addtional trade name for my another firm
- Commission / Agency Business without books: REAL E
- Difference between AIS and 26AS data.
Related Topics :
CAclubindia
