Reg forex loss on capital asset & depreciation

This query is : Resolved

Amit (Querist)
Follow

14 March 2014 Hi
If a person has brought a machinery in FY 12-13, the same was put to use in same year. In FY 13-14, he incurred a forex loss while making the payment. He have to capitalise that expenditure. Now my query is, if the machinery was eligible for additional depreciation in FY 12-13, then can Forex loss capitalised be eligible for additional deduction in FY 13-14?

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

14 March 2014 Yes. The additional payment required to be made to supplier on account of rupee devaluation will qualify for increase of cost of machinery.