A proprietor purchased a Machinery costing about 45 lakhs by taking loan from bank. He used the Machinery for manufacturing purpose. He paid EMI to bank around Rs.7 lakh as interest and 1 lakh as principal repayment during the financial year. While preparing Profit & Loss A/c., can he show the depreciation amount on machinery & interest paid amount as expense in the P&L. Please reply
Menu
Depreciation & interest paid claimed in P&L
Replies (1)
yes, depriciation and interest is deductible expenses from profit and gains of business.
Recent Topics :
- “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.
- Applicability of FCRA to Article Processing Fees (
- GST Return
- Practical queries on buy back of shares
Related Topics :
CAclubindia
