Friends
In case a machinery eligible for Addiitional Dep. u/s 32(1)(iia) acquired on 31.03.2010 is put to use on 31.03.2011, then what would be the additional depreciation rate for the P.Y. 2010-11 ? is it 10% or 20% ?
4 Replies
Dinesh Selvaraj
(CA Final student)
(357 Points)
Replied 31 December 2011
For P.Y 2010-11, the rate of additional depreciation would be 10% since the machinery was used for less than 180 days.
praveen
(Chartered Accountant)
(6971 Points)
Replied 31 December 2011
Yes 10% only.
Instead if they had put it to use after another day they would be eligible for 20% depreciation .
But anyways that would be for the next year.
CA Sahil Singla..
(Service Tax )
(3746 Points)
Replied 31 December 2011
So does it mean that the following rule applicable for Normal Dep is not applicable here -
" if asset aquired in one PY is put to use in another PY then dep would be at full rate & not 50% whether or not the asset is put to use for less than 180 days"
CA Rajat Jain
(CA)
(1677 Points)
Replied 31 December 2011
20 % of actual cost n it wil be 10 % if used if concept of 180 days wil aply
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