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Depreciation

bdj (propreitor) (40 Points)

20 May 2019

Hello,

My client has purchased a Tempo for transporting goods for his business. I have already availed ITC on the same purchase. Can I also take Depreciation on the purchase price(minus tax component) ? For eg. My client paid 160000 (125000 price of the tempo and 35000 gst amount). Can I claim depreciation on 125000 after claiming 35000 as ITC.

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7 Replies

Chhalani and Associates (CA - www.cachhalani.com) (142 Points)
Replied 20 May 2019

Yes.. u can claim depn on 1.25 L.

1 Like

Shivam RC (Student) (23683 Points)
Replied 20 May 2019

Yes you can claim Depreciation on Rs.1,25,000 @ 15% on tempo u/s 32 of the Income Tax Act 1961.

RAJA P M ("Do the Right Thing...!!!") (127153 Points)
Replied 20 May 2019

Yes... You (client) can claim depreciation for the Basic value like as 125000...

pritesh (CA Final student) (7101 Points)
Replied 21 May 2019

Yez you can claim deprecation

bdj (propreitor) (40 Points)
Replied 21 May 2019

Thanks. But i am confused regarding percentage now. Is it 40% or 15% ? . I believe 15% is for OTHER THAN THOSE USED IN BUSINESS. and mine is used in business. Can it not termed as Commercial vehicle on which depreciation is 40%.

Please advice.

DARSHIT RATHOD (27 Points)
Replied 21 May 2019

firstly, as per sec 17 of gst itc on vehicle purchased other then a service providers is disallowed. So entire 160000 will be capitalised and depreciation will be claimed on entire 160000.

MINAL (Advocate) (39 Points)
Replied 21 May 2019

My client is service provider . He is into business of buying and selling of paper bags and other items and uses tempto to transport those goods from his shop to clients shop. Tempo is fully used for business purpose... So why cant we claim ITC ?