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TRUST U/S 12AA
a trust which runs a hospital and in question depreciation is given so should i substract the depreciation from income of hospital or not?
Replies (5)
In case of trust, both revenue and capital expenditure applied for objects of trust are allowed as deduction in the year in which they are purchased itself. So to my knowledge there's no question of deduction on Account of depreciation as capital expenditure is already deducted in year of purchase.
in a question depreciation was given and it was deducted from revenue.
but i think it is wrong
as asset acquired for the purpose of trust is treated as application of income and therefore whole amount of the asset is allowed
but i think it is wrong
as asset acquired for the purpose of trust is treated as application of income and therefore whole amount of the asset is allowed
Trust can either claim depreciation or treat cost of asset as application. In the question your referring does the answer treat the cost of asset as application?
it is not specified. in question only depreciation is given.
can we assume that asset amount was taken as application so we don't treat depreciation.
can we assume that asset amount was taken as application so we don't treat depreciation.
Yes you can do so but state the assumption in the answer sheet
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