Depreciation on asset sold after 180 days of use
This query is : Resolved
07 June 2016
If an asset is sold after 180 days of use, do we have to charge depreciation on that asset for the days the asset had been used? What is the treatment as per IT rules?
Guest
Guest
(Expert)
07 June 2016
Apply the block concept.
Once an asset enters the block of asset,it looses its personal identity & classified with whole block.
If the block of asset does not exist on balance sheet date,no depreciation shall be charged.
Once an asset enters the block of asset,it looses its personal identity & classified with whole block.
If the block of asset does not exist on balance sheet date,no depreciation shall be charged.
Message likes :
1 times
07 June 2016
Dear pramod
Under companies act you charge depreciation on number of days you used the asset.
But under income tax act we charge depreciation on block of asset basis.
In income tax if asset is sold during the year then we deduct the sale value from the opening wdv. Then we calculate depreciation on the block
Under companies act you charge depreciation on number of days you used the asset.
But under income tax act we charge depreciation on block of asset basis.
In income tax if asset is sold during the year then we deduct the sale value from the opening wdv. Then we calculate depreciation on the block
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- Event company query
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
Trending Online Classes
CAclubindia
