Hai friends, Please tell me,Depreciation on fixed assets be calculated including tax on its sale value or excluding its tax?
Hai friends, Please tell me,Depreciation on fixed assets be calculated including tax on its sale value or excluding its tax?
if tax is paid on it & setoff is caim in vat then you will take dep on net amount
dear friend
if you read accounting standered 10 all the expenses incurred specifically for a asset to bring it to its intened use should be capitilise
this becomes the historical cost
and as per accounting standard 6
depreciation is to be calculated on historical cost
so if the taxis are capitilise then depreciation is to be charged on the tax amount also
when to capatilise interest is when they are not clamed as setoff of refunded from it department
waiting for your response
u have to take total value including Tax., U can't take VAT for Fixed asset, there fore no question of excl., tax from fixed assets value.,
In case of sale of assets, then Vat can be claim from Sale Tax, and even dep., on Sale tax can be deducted on sales value.,
I Also Agree with Mr.Mahesh reg.,
Thx
pls send me rate of dep Income Tax act as well as companies act
when we purchase fixed assets it is record into RG 23 c II . it is capital goods register in which we claim excise duty ,edu. cess and She cess. . and we have to deduct vat from the fixed assets after that we have to calculate deprication.
second thing .
according to AS 10
we include duties and taxes when they are not refundable.
but if its refundable than firstly it is deduct than we calculate historical cost
dep. charge on historical cost
when we purchase fixed assets it is record into RG 23 c II . it is capital goods register in which we claim excise duty ,edu. cess and She cess. . and we have to deduct vat from the fixed assets after that we have to calculate deprication.
second thing .
according to AS 10
we include duties and taxes when they are not refundable.
but if its refundable than firstly it is deduct than we calculate historical cost
dep. charge on historical cost
| Originally posted by :Azmathullah Khan | ||
| " | u have to take total value including Tax., U can't take VAT for Fixed asset, there fore no question of excl., tax from fixed assets value.,In case of sale of assets, then Vat can be claim from Sale Tax, and even dep., on Sale tax can be deducted on sales value.,I Also Agree with Mr.Mahesh reg., Thx | " |
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