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Depreciation as per companies act.
Dear Madam/sir,
A company was incorporated on 14/03/2011. The company purchased fixed assets during August 2011 and installed it for operations. Other than the purchase of fixed asserts, company didnt carry any operations during the FY 2011-12. When finalising the accounts for audit, whether the company can charge depreciation for FY 2011-12 ? If the company can charge depreciation, then whether date of purchase or date of put in to use is considered ? The company started commercial productions from May 2012 onwards.
Please guide me.
Thank you.
Replies (3)
If u r preparing Financial Statements as per companies Act,1956 then charge depreciation from the date of purchase and if u r Computing Depreciation as per Income tax Act,1961 then calculate depreciation from the date of put to use as was decided by the SC in the case of dinesh kumar gulab chand aggarwal.
hope this will help u
Thank you all for the great help
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