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Amber Jain (Article Assistant)     03 June 2013

Depreciation on second hand asset


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

 5 Replies

CA.Vinita Gupta

CA.Vinita Gupta (Deputy Manager- Finance)     03 June 2013

At the cost of acquisition not Original Cost


S.Satya (CA-FINAL STUDENT)     03 June 2013

Cost of Acquisation 

Amber Jain

Amber Jain (Article Assistant)     03 June 2013

but if the orignal owner has taken the benefits of depreciation then what is the effetcs to be given.

M.Sriram Shenoy

M.Sriram Shenoy (CA Final)     03 June 2013

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.

Mihir Manohar

Mihir Manohar (CA Final - Article Assistant)     03 June 2013

Depreciation will be claimed on the Acquistion cost under S.32 under the corcerned Block.

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