31 July 2008
A company constructs a building on its own land , and then capitalise both ,and charges depreciation on entire value. Now it wants to write back the depreciaton on land.
Can it Do so? Is there any Case Law Regarding this.
31 July 2008
actually when the land was purchase that time it has not been entered into the books and the whole value together with the value of land was capitalised with building A/C and depreciation ws charged accordingly . it was purchased in 1990 for 90 lacs and now the WDV is 60 lacs nw i want to write off the value of BUILDING frm WDV coz i want to reconstruct a new building on the same land?????????? in case i dont know the actual cost of the land so how should i compute thaht?
01 August 2008
The actual cost of the land would have been declared in the valuation report of the registering authority. Based on that you can reinstate the value of land by writing back the depreciation thereon.
CAclubindia
