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Machinery Purchased and scrapped in the same year

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HOD (Accounts Dept)
1426 Points Posted on 14 June 2020
What will be the treatment for tax depreciation in case a machine is purchased in April-20 of INR 1,00,000 and scrapped in July-20 with INR 1,000?
Whether tax depreciation is allowed on this asset?
If yes, then how much?
Plz reply.
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On 14 June 2020 at 05:56 Report
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"Do the Right Thing...!!!"
128152 Points Posted on 14 June 2020
As per my view...
Yes... Depreciation applicable.
Provide Half value. (if machinery under 15% then We will apply 7.5% or 1/2 value)
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On 14 June 2020 at 06:31
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AUDIT ASSISTANT
179 Points Posted on 14 June 2020
Depreciation will be allowed since machine is put to use for less than 180 days , 50% Dep. will allowed . Further you are engaged in manufacturing or production activity also eligible for Additional dep. with half rate. But make ensure that WDV as well as block of assets exist.
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On 14 June 2020 at 10:15


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