Fixed Assets

This query is : Resolved

kaushal kihsor (Querist)
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07 April 2011 for the capatalisation of asset what date should be taken, i,e the asset received date, bill date, booking date or installation date as per company act and income tax act?

Ramesh

Ramesh (Expert)
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08 April 2011 Dear Kaushal,
Put to use date is considered.whenever installation is required, normally installation date is taken as put to use date e.g. Plant & Machinery, whereas in case of other assets like ready made Furniture, the receipt date is taken as put to use date.
rgds,
ramesh

Vinod Kumar Mathuria

Vinod Kumar Mathuria (Expert)
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08 April 2011 for capitalization date of assets is normally the date on which the entries to be made in the books of account which is usually the date of invoice after the general procedures/policy followed by the company ( keeping in view that the invoice is received with or after the capital item is received) but in case of claiming the depreciation as per company act as well as income tax act the date when the assets is put to use is to be considered.

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