Depreciation

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vipin (Querist)
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13 September 2010 Please provide the suggestion regarding the depreciation

if we purchase a Commercial VEHICLES ON DATED 01.02.2009 AND THIS HAS ALREADY BEEN USED AT THAT TIME AND WE HAVE CHARGED 50% RATE OF DEPRECIATION AND NOW WE ARE CHARGING AGAIN 50% DEPRECIATION ON FINANCIAL YEAR09-10.
AM I CORRECT OR NOT
pLEASE GUIDED ME .

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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13 September 2010 As per Section 32 depreciation in Income tax is allowed on WDV as at March 31 of respective previous year. If any asset is sold before it, depreciation for that year can not be claim. So in your case depreciation will not be provided to earlier owner. However, you will be entitled to claim depreciation

CA SIDHARTH HIRALAL PATNI

CA SIDHARTH HIRALAL PATNI (Expert)
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13 September 2010 There was a circular regarding allowing commercial vehicles to get higher rate of depreciation. U can refer to it. It is available on www.incometaxindia.gov.in

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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14 September 2010 Circular regarding getting higher rate of deprecaition is for commerical vehicle acquiring after 1/01/2009 before 30sept 2009.
It is only for first year in which vechile purchased. afterward normal deprecaiton will be allowed.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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14 September 2010 Mr. Sudhansu Whether you are answering the above question or any other .
becasue answer is not totally match with above question.

Anjani Pratap Tiwari

Anjani Pratap Tiwari (Expert)
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14 September 2010 You can charge depreciation @ half of rate of dpreciation as the assets is put to use in the first year less than 180 days. On wards you can charge full rate of depreciation . Also you can claim in the first year the additional rate of depreciation.