Depreciation

Put to use

put to use as per section 32

You can provide depreciation on Put to Use...

Depreciation on a Fixed asset shall commence from the date it is ready to use .

ready to put to use

DEPRECIATION is charged when the fixed assets purchased because

DEPRECIATION refers to gradual and permanent decrease in the value of fixed assets due to natural wear and tear , passage of time , OBSOLESCENCE , useage etc.

When fixed assets purchased or put to use or ready to use , it's value starts declining the value due to natural wear and tear like rusting of machines (all fixed assets ).

When fixed assets ready to use , it also starts declining in the value of fixed assets due to consistently use of fixed assets for the production purpose .

And it is compulsory to charge DEPRECIATION for every company who uses fixed assets for the production process according to Accounting Standard 6.

So , when assets put to use or ready to use , it is compulsory to charge DEPRECIATION on fixed assets.

In both conditions , it is compulsory to charge DEPRECIATION.

I strongly agree with Vaibhav Siroliya 🙃

In this chain of replies, I believe the reply from Mr.Vaibhav Siroliya is the correct one.Depreciation is charged when the assets are purchased.When an asset is bought the declining of value  starts..We need not take strain to prove whether it is put in use or ready to use. If the Assessing Officer questions the validity of claim we can provide proof of utility; kept ready for use or put in use.

thank you and congratulations