Increase depr. due to revision of useful life of fixed Asst.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 January 2010
Dear Sir,
Please confirm whether increased (additional)depreciation due to revision of useful life of fixed assets can be deducted from book profit to arrive at the profit for computation of MAT liability.It's urgent.
Thanks & Regards,
Amar Kant
Please confirm whether increased (additional)depreciation due to revision of useful life of fixed assets can be deducted from book profit to arrive at the profit for computation of MAT liability.It's urgent.
Thanks & Regards,
Amar Kant
07 January 2010
Depreciation changes due to Revision of useful life of fixed asset is a change in accounting estimete instead of revaluation of asset.
So in my opinion it should be deducted from book profit for the purpose of calculating MAT liabilty.
So in my opinion it should be deducted from book profit for the purpose of calculating MAT liabilty.
07 January 2010
Agreed with Mr. Varun that there is only change in the useful life of the asset but not in the change in the value of the Asset.
So, Total depreciation will be equal to amount spent on the Acquisition of the asset, which can be claim according to depreciation.
However, Depreciation rates are available under sec 32(Income Tax Rules, 1961)are different from Company Act depreciation rate. So, compute your depreciation amount according to sec 32.
Regards!!!
Dinesh S. Adhikari
So, Total depreciation will be equal to amount spent on the Acquisition of the asset, which can be claim according to depreciation.
However, Depreciation rates are available under sec 32(Income Tax Rules, 1961)are different from Company Act depreciation rate. So, compute your depreciation amount according to sec 32.
Regards!!!
Dinesh S. Adhikari
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
- Applicability
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- TDS NUMBER SURRENDER
- Gst Sales of FY 2023-24
- Offsetting interest income against derivative trading losses
- Application of 115BAC
- Legal heir raised refund , but refund issued to the closed account of deceased.
- RCM - commercial rent paid to URP under GST
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
