Depreciation on commercial vehicle

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 October 2012 MY CLIENT HAVING A PARTNERSHIP FIRM DEALING IN TRANSPORTATION WORK AND AUDIT U/S 44 AB.

HE IS CHARGED DEPRECIATION @ 15% FOR THE F.Y. 2011-12 ON COMMERCIAL VEHICLE, WHICH ARE PURCHASE ON SAME F.Y. BUT AS PER INCOME TAX ACT THE DEPRECIATION IS ALLOWABLE @ 30%.

WHETHER 15% DEPRECIATION CHARGED IN BOOKS AND DEPRECIATION CHARGED IN INCOME TAX RETURN AS PER IT ACT (i.e. 30%).

WHETHER WE ARE CREATE DEFERRED TAX LIABILITY ACCOUNT IN THIS PARTNERSHIP FIRM

PLEASE GIVE YOUR VALUABLE SUGGESTION.

CA.Yogesh Patel

CA.Yogesh Patel (Expert)
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27 October 2012 In Sr.No.14 of Part-B of 3CD , one has to mention the details of depreciation allowable as per Income Tax Act,1961 and it has to nothing to do with you accounting records.

Just mention in the accounting policies the method and rate of depreciation.