12 July 2010
Dear Sir / Madam, A person have purchased a Car of worth rs. 8,50,000/- in 2005-06 and a building in next year worth Rs. 12,75,000/-. now in 01/04/09 he start his business and bring his car and the building in business. so what is the WDV can he taken on 01/04/09 ?
12 July 2010
In respect of Building, Explanation 5 to Section 43(1) shall be invoked and the actual cost to the assessee shall be actual cost of the building to the assessee, as reduced by an amount equal to the depreciation calculated at the rate in force on that date that would have been allowable had the building been used for the aforesaid purpose since the date of its acquisition by the assessee.
In respect of any assets other than building, actual cost of such assets shall be actual cost in the hands of the assessee when it is put to use in the business of the assesse.
CAclubindia
