Dear Friends,
Please tell me, if an asset wich is not yet put to use, should i add such asset in the relevant block of assets and charge 0% seperately or should I treat that asset saperate from the block til the asset is used???
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Asset which is not put to use
Replies (4)
depreciation arises due to effluxion of time so u need to provide depreciation even though it is brand new and not used so far
i am agree with sivaram u should charge depreciation on particular asset.
Suppose an asset was acquired during the A/Y 2011-12 for d purpose of business. It ws put to use during a/y 2012-13. While computing wdv of d block during a/y 2011-12., should i include d unused asset in d block of asset or not.
Hai,
According to opinion given by ICAI expert advisory committee in Whittle Anderson Ltd. v CIT (79 ITR 613), if the asset is plant & machinery and, it is installed and is fit for use, then depreciation should be provided. Otherwise provision for depreciation is not necessary.
However, according to accepted accounting principles, depreciation also arises out of efflux of time, hence, on has to keep in mind the type of asset too.
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