Depreciation

This query is : Resolved

Guest

Guest (Querist)

16 August 2013 Discount given by Seller has been deducted from Fixed Asset in Books of Accounts and Depreciation calculated accordingly.

Now for Income Tax purpose will it be deducted from Gross Block?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

16 August 2013 The amount AFTER discount will be capitalised in the books and the same amount shall be used for calculating depreciation as per Income Tax Act.

Guest

Guest (Querist)

16 August 2013 Gross Block as per books is existing and it is subsequent credit given by seller that is deducted from Assets in Books of Accounts..

Now should i also deducted it from Block for Income Tax purpose.

Upgrade to CAclubindia Pro. Subscribe Now!

Aditya Agarwal

Aditya Agarwal (Expert)
Follow

16 August 2013 What is nature of Discount?

Is the discount on account of early payment?
or it relates the Assets directly?

Guest

Guest (Querist)

17 August 2013 It relates to Asset directly , So deducted as per AS 6, Now what to do for income tax purpose?