Our client being a Pvt. Ltd. Co.has purchased textile machine of worth Rs.35 Lacs on 08.06.2009 & same put to use on 01.07.2009.Later on received Tuf subsidy on the above machinery of Rs.6 lacs on 12.01.2010.
Now our query is (i) What will be treatment of the above transactions in books of A/c & (ii) How much Depreciation will be recorded in Books as per Companies Act as well as as per I.T.Act.
Please reply urgently.
Thanks in Advance.
Ankur Baheti 
Menu
Depreciation as per Companies Act
Replies (1)
The receipt of Subsidy is to be given effect as per AS-12. For IT also you must reduce it from cost of acq.
For companies act you charge depreciation for the number of days used as per rates prescribed in sch XIV. For IT you can claim normal and additional depreciation for the asset. If asset is put to use less than 180 days in the year .,then 50% of normal and additional depreciation can be claimed.
Recent Threads
- Difficulty in uploading itr3
- Gift received from Sister
- "off market credit transactions" mention
- Section 5A - Portuguese Civil code applicability
- Tax Audit Applicable or not?
- Understanding Why the CA Foundation Pass Percentag
- ITR3 - Switch from Old to New Regime
- Best Online Coaching for CA Intermediate Complete
- FCRA 6A Address Change request
- Can you share how you practically used the list fo
Related Threads
CAclubindia
