Additional Depreciation

This query is : Resolved

Girish (Querist)
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14 August 2010 I want to know while calculating the addtional depreciation addition before september is 20 % and after september is 10%. I want to confirm if we calculate the 180 days for eg from 1st April 2009 180 days completes on 27.09.2009, please advise we have to calculate additional depreciation in full rate @ 20% for the asset put to use on or before 27.09.2009 or we have to calculate the additions put to use upto 30th Sept 2009.

Regards

Girish

CA Sanat Pyne

CA Sanat Pyne (Expert)
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14 August 2010 10% is applicable if asset is put to use less than 180 days .that means if any assets is installed upto 1 st october then 20% is applicable. it is better you should calculate wheather the asset is put to use for less than 180 days or not.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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14 August 2010 Please calculate from 31st March backwards to compute 180 days not from April. It will come 1st or 2nd october.

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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14 August 2010 GENERALLY IT IS TAKEN IN FINANCIAL ACCOUNT
BEFORE 30 SEPT AND AFTER 30 SEPT.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 August 2010 Please note that for claiming additional dep, both acquisition & installation of machinery should take place in same F.Y. Further, Additional Dep. would be allowed to the extent of half of 20 % as the put to use is less than 180 days . Therefore, additioanl dep would be allowed only @ 10% of original cost of new machinery.