we are purchased a bus chassis on 06/02/2016 at Rs-3640000(paid), but it body building works not yet completed. it's completed on April end (The body building approx. charges is 4000000) not paid. Then how to calculate the depreciation on chassis. pls guide me
26 March 2016
DEAR' UNDER INCOME TAX DEPRECIATION IS ALLOWED FROM THE DATE OF PUT TO USE. SINCE THE BODY IS NOT COMPLETED THE ASSET CAN NOT BE SAID TO BE PUT TO USE. AS BUS CAN NOT BE USED WITHOUT BODY. HENCE NO DEPRECIATION ALLOWED FOR THE FY 15-16.
CAclubindia
