Hello,
If some one is having a properiotorship firm and he has purchased a second hand vehicle so whether depreciation on the same can be claimed and if yes at original cost of asset at which previous owner has acquired or at our cost of acquisition.
Thanks & Regards
Amber Jain
At the cost of acquisition not Original Cost
Cost of Acquisation
but if the orignal owner has taken the benefits of depreciation then what is the effetcs to be given.
Depreciation should be calculated on cost of acquisition. If previous owner has claimed the benefit of depreciation, then the subsequent owner has to determine the useful life of the asset depending upon its functional capacity and depreciate the asset based on that.
Depreciation will be claimed on the Acquistion cost under S.32 under the corcerned Block.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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