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Depreciation

1192 views 1 replies

CA.Anuj kumar sharma

Service in Public Ltd. Co.

99 Points Joined December 2007

Dear All,

My company is in power sector, of which different projects are in construction stage.The company has transferred the amount from CWIP to different assets.So, now from this financial year, shall the company is allowed to claim the depreciation on the allocated assets regardless of the fact that,projects are in construction stage?

Is there any requirement to provide depreciation / not to claim depreciation during construction period?

Are we required to prepare the P&La/c or expenditurea/c during construction period.

Kindly reply ASAP.

Thanks

Replies (1)

CA. Dashrath Maheshwari

TaXpert

15121 Points Joined September 2007

U CANNOT CLAIM DEPRECIATION UNTIL THE ASSET IS NOT PUT TO USE AND IF A ASSET IS UNDER CONSTRUCTION, ONE CAN NOT PUT THIS INTO USE, SO U SHOULD NOT TRF VALUE FROM CWIP TO RESPECTIVE ASSET UPTO COMPLETION.