03 September 2013
One of my Assessee purchased a second floor of the building which is used for business purpose. The purchase price (as per sale deed) is a composite one (sale deed does not indicate the prices of land and building separately), then no distinction at least in the consideration paid to the vendor can be made.
My query is whether the Assessee is eligible for full depreciation on the entire cost ? Or As the cost of second floor of building also includes rights in land whether we need to separate the cost of land to claim depreciation ?
03 September 2013
As far as my knowledge is concerned depreciation can't be claimed on land values.All the provisions of the act specifically exclude depreciation on land so the value of land and building should be bifurcated for the purpose of claiming depreciation
CAclubindia
