02 June 2011
What is the date of capitalsiation of an asset. Is it the date when an asset is ready for use. and if yes is then depreciation charged even when asset is not actually used but was ready to use.
02 June 2011
In both Income tax and Company act, date on which the assest is acutaly put to use, shall be considered as a date of starting of Dep.
the words used in AS 10 "it is written theat date till...." is for the value of capitalisation value. it means if a assets is ready to use on 1 jan 10 and its put to use on 1 march 10 than dep. shall be start from the 1 march 10 but the capitalisation of exp related to such assets will be done only up to 1 jan 10 i.e. borrowing cost etc.
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