Depreciation on quarry

This query is : Resolved

Rajesh Barad (Querist)
Follow

06 January 2016 Hello,

Land in not a Depreciable assets that we know, but so far as Mining and Quarry industries are concern, they are going to loose that part of land after excavation. so can we take depreciation on the land used for mining or quarring?. if so at which rate? Because there is no provision in companies act regarding such.

Thanks in advance...
Regards,

praveen

praveen (Expert)
Follow

07 January 2016 Yes there is no rate mentioned, however you can claim depreciation in the following method. You will have to take an estimate of the minerals or commodity available in the land and then apportion the value of the land towards howmuchever is mined during the year.

Rajesh Barad

Rajesh Barad (Querist)
Follow

07 January 2016 Thanks.
But is there any chances of issues in income tax scrutiny?

Regards

Upgrade to CAclubindia Pro. Subscribe Now!

Rajesh Barad

Rajesh Barad (Querist)
Follow

07 January 2016 Thanks.
But is there any chances of issues in income tax scrutiny?

Regards

praveen

praveen (Expert)
Follow

07 January 2016 You are claiming under companies act right.. Under income tax act I don't think u can claim that as expenditure.

Rajesh Barad

Rajesh Barad (Querist)
Follow