DEAR SIRS,
PLANT & MACHINERY ITEMS ARE PURCHASED , ERECTED DURING CURRENT FINANCIAL YEAR IE.MECHANICAL COMPLETION OF OF PLANT IS OVER. BUT PRODUCTION FROM THE PLANT WILL TAKE PLACE NEXT FINANCIAL YEAR ONLY.
CAN IT DEPRECIATION BE CLAIMED DURING THE CURRENT FINANCIAL YEAR BASED ON MECHANICAL COMPLETION OFPLANT & MACHINERY.
No. The depreciation will be allowed only if the machinery is used for the manufacuturing/production.
IT depreciation can only be claimed if the asset is put to use. As the asset will be used next year, you can claim dep from next year onwards. However, the cost to be taken in books for such machinery next year will be governed by Sec 42(1)
Deprication can be claimed if assets is ready to put to use
Suraj Garg and Associates
New Delhi
CA Inter
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CCI
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