depreciation on fixed asset
This query is : Resolved
17 July 2008
hi,
mr X purchases the machinery worth Rs. 1,50,000 but he pays Rs. 145000 only and the remaining difference is transfer to the Kasar & Vatav a/c..
my question (1) whether the asset can be showed with full value as it represents the fair market value? and dep. should be calculated on it?
(2) should be shown on actual amount paid as income tax says that dep. should be calculated on actual amount paid of asset..
please provide me with sufficient reply..
regards,
Tarin Shah
mr X purchases the machinery worth Rs. 1,50,000 but he pays Rs. 145000 only and the remaining difference is transfer to the Kasar & Vatav a/c..
my question (1) whether the asset can be showed with full value as it represents the fair market value? and dep. should be calculated on it?
(2) should be shown on actual amount paid as income tax says that dep. should be calculated on actual amount paid of asset..
please provide me with sufficient reply..
regards,
Tarin Shah
17 July 2008
The depreciation is to be calculated on the actual cost of machinery.
17 July 2008
43. In sections 28 to 41 and in this section, unless the context otherwise requires:
(1) actual cost means the actual cost of the assets to the assessee, reduced by that portion of the cost thereof, if any, as has been met directly or indirectly by any other person or authority:
means if x had paid only 145000 and bal 5000 is paid by kasar, then x can claim dep. on 145000 only.
(1) actual cost means the actual cost of the assets to the assessee, reduced by that portion of the cost thereof, if any, as has been met directly or indirectly by any other person or authority:
means if x had paid only 145000 and bal 5000 is paid by kasar, then x can claim dep. on 145000 only.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- GST ON EXPORT COMMISSION
- Credit profit and loss account in case of bonus share received
- How to determine cost of acquisition of shares on De-merger or Merger
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
