sampath (student) (119 Points)
20 July 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(196196 Points)
Replied 20 July 2018
Depreciation = Rate of Depreciation * (Rs.48,14,273 --- 3,70,000)
Aggregate of WDV of all the assets falling within
that block at the beginning of the year
Add: Actual cost of any assets falling within block
acquired during the previous year
Less: Money received or receivable in respect of any
asset in the block which is sold, discarded, demolished
or destroyed during the previous year
= WDV at the end of the year
Less: Depreciation at block rate (if WDV at the end of year is positive)
Closing value of the block of the asset at the end of the year
If the amount of WDV comes at a negative amount then no depreciation is allowed and the amount will be considered as capital gain and the closing WDV will be zero.
If such amount is positive and no asset exists in the block then such amount will be treated as short term capital loss and no depreciation is alllowed.
Dipika Shah
(Partner)
(188 Points)
Replied 20 July 2018
Reduce sale price of Rs.3,70,000 from opening WDV of Rs.48,14,273 from that block of assets, and calculate depreciation at rate applicable on remaining amount of block of assets i.e., Rs.44,44,273
sampath
(student)
(119 Points)
Replied 20 July 2018
rama krishnan
(12244 Points)
Replied 20 July 2018
sajid
(article assistant)
(26 Points)
Replied 25 September 2019
Sir, i have a doubt, that if there is purchase of asset on 1-12-2017 amounting 100000.
And if the sale stated above is made on 31-12-2017.
How to treat it ?
Sai Varun
(5 Points)
Replied 09 June 2020
Sir why the sale value instead of WDV OF ASSET suppose if sale value is 99%of asset and in substance the balance would be more than 1% which makes no logic in it.please clarify it sir
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