from which date depreciation should be charged????

Page no : 2

(Guest)

Shashi u r absolutely right. U deserve a round of applause.......Hahahaha!

1 Like

The Harshit Aggarwal (B.Com(H) ,CS Final) (5278 Points)
Replied 21 October 2009

I got one more point:

In income tax it will be treated as mentioned by Poonam and Shashi ( @ shashi-this time i agree with u) i.e. from the date when it is first put to use.

But in Accounting, depreciation will be charged from the date of purchase i.e. 1/4/09.

saranraj (CA FINAL) (419 Points)
Replied 21 October 2009

Depreciation has to be calculated from the date of installation of the asset (the date from which such asset came into the books of account). Asset gets depreciated by effluxion of time.

(Guest)

Originally posted by : Harsht Aggarwal*
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Agree with u as well........

Nitin Grover (CS) (1228 Points)
Replied 24 October 2009

Dear Friend

if its installed before or on 30 September then full rate

other wise means after or on 01st Octobor then Half RAte

Thanks

Nitin GRover

samadhan sahebrao patil (Accountant) (48 Points)
Replied 01 August 2019

IN MANY SMALL INDUSTRIES THEY USE MACHINE QUICKLY AFTER PURCHASE MACHINE BUT IN MANY BIG INDUSTRIES IT NEVER HAPPEN WHEN MACHINE PURCHASE IT PUT IN CWIP.. WHEN COMMERCIAL PRODUCTION WILL START THEN THEY REALLY USE MACHINE

THERE ARE 2 SCENARIO IN THIS MATTER

1) SMALL INDUSTRY - DIRECTLY SAID FIXED ASSET ON PURCHASE DATE NOT PUT IN CWIP - CHARGE DEPRECIATION FROM PURCHASE DATE OF MACHINE

2) BIG INDUSTRY - DIRECTLY NOT SAID FIXED ASSET ON PURCHASE DATE TILL CWIP NOT COMPLETED - CHARGE DEPRECIATION WHENEVER CWIP WILL COMPLETED AND MACHINE CAPITALIZED.