Regarding Depreciation

This query is : Resolved

rajesh (Querist)
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29 January 2010 Dear Expert,

Please help me in this regard.

we have been using a machinery from 5 years, but in this year we have used only for 6 months and for the rest of the period it is idle.

in this situation do we have to calculate depreciation for the entire one year?

by
raj

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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30 January 2010 if use for more than 180 days then calculate depreciation for the entire one year other wise it will be calculated at 50% of Depreciation rate means half of depreciation which will be chared if ,machine used for full year.

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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01 February 2010 better claim for full year, above are applicable in case of new assets only

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CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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01 February 2010 yes, claim for full year 180 days is applicable for new assets purchase and put to use for first time in p/y.