Depreciation on motor cars

1. What value of the Motor Car can be consider for calculation of depreciation ?

    For (e.g.) If a Motor car costs Rs. 10,00,000/- (including cost of registration & insurance) but the ex-showroom price for the vehicle is only Rs. 8,50,000/-. Then what value should be consider while calculating the depreciation as on March,31st ?

2. Ex-Showroom Price generally includes VAT(imposed by State Governments), Hence if only Ex-showroom price is consider while calculation depreciation then kindly clarify whether amount paid towards VAT is to be included or excluded ?


Awaiting your expert advice.