20 January 2009
As per the Proviso to Section 32(1)...
50% of the depreciation is allowed, if the asset is put to use for less than 180 days in the previous year..
but if an asset is purchased in Jan 2007 but put to use on Dec 2008, the restriction of 50% of depreciation will not apply i.e. for A.Y. 2009-10 (F.Y. 2008-09) depreciation on the respective asset will be charged at 100% and no depreciation will be charged for the A.Y. 2008-09 (F.Y. 2007-08) as the asset is put to use in the next year.
However, if the asset is put to use in April, 2009, will the respective asset be eligible for depreciation in A.Y. 2009-10 (F.Y. 2008-09), considering the put to use principle...!!!!!
21 January 2009
The period of use is to be checked onle. As such date when the asset is put to use is relevant. In the instance given as the asset is used for less than 180 days the depreciation shall be restricted to 50% of the rate prescribed only. Also, depreciation will be chargeable and claimed in AY 2010-11 in case the asset is put to use in April, 2009 and no depreciation will be allowed for AY 2009-10.
24 January 2009
but sir..I guess as per the proviso to section 32, the restriction of 50% will apply only if the following two conditions are satisfied:
1. The asset is acquired in the previous year.
2. It has been put to use for less than 180 days in the same previous year.
Hence, for A.Y. 2009-10(F.Y. 2008-09), 100% depreciation will allowed though it was put to use in April, 2009 (purchased on Jan 2008) as the asset was not purchased in the given year.
Actually, I am confused between, if 'ready to use' includes "put to use" also..!!!..as if an asset stands in the balance sheet but has not been put to use, can the assessee claim depreciation against it..!!!..as stated in the above said example i.e. if depreciation will be allowed in A.Y. 2009-10, when it is neither purchased nor used in the same year..!!
CAclubindia
