Depreciation for pre commercial operation

This query is : Resolved

G. Ramu (Querist)
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16 December 2009 Hi Sir,

Could you please clarify

can depreciation be charged before commencement of business in case of a newly formed company??? if yes..then as there is no P&L a/c..the same would be treated as pre operative exp..isn't it???

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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17 December 2009 No depreciation is charged till the assets (i.e. machines etc.) are put to use.

So either for the purpose of accounting or for income-tax you need not claim depreciation.