19 March 2012
A pvt Ltd.company have its assets but not running business currently. So there is no turnover and profit during the year. Can the company charge depreciation on its assets (Machinery etc.) for the year?
19 March 2012
Depreciation is applicable when it is put to use and if it is not put to use yet, no depreciation will be applicable. But you need to check the 1st put to use is pending if it has already put in to use and then business is on hold then you can take depreciation benefit u/s 32
Depreciation on assets is not interlinked with the running of the business. Once the asset is put to use, depreciation will be charged off irrespective of the fact whether bussiness is not running or incurring losses. Dep. is interlinked with respect to wear and tear, commercial usage and other factors.
19 March 2012
Depreciation may not be interlinked with running of business but after put to use when it has been put in the business for use then afterwards it is not matter business is running or not you can take depreciation as per section 32
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