23 November 2010
Is charging of depreciation mandatory under the comanies act and income tax act on the assets used in a project yet to commence commercial production ?
24 November 2010
Firstly, it is mandatory for every company to provide for depreciation in the books of account before declaring dividend.
Income Tax:
As per explanation 5 of section 32: Deprciation provision sahll apply, whether or not assessee has claimed the deduction in respect of depreciation in computing his total income.
25 November 2010
Dear sir I aked this question as it is a project stage and no question of income or dividend. please guide me whether depreciation can be charged to profit and loss account or not.
CAclubindia
