Cost of asset Rs.75,000. The payment done were Rs.12,000 in cash on the date 20/10/2020 , Rs.13,000 in bearer Cheque on 25/10/2020 , Rs. 45,000 through bank on 27/10/2020 , and Rs.5,000 in Cash on 28/10/2020. What is the amount to be taken as Cost for calculating depreciation of asset????
3 Replies
CA Aakarsh Jain
(CA)
(10431 Points)
Replied 14 November 2021
You can claim depreciation on Rs 75000 in your books of accounts but as per section 40A(3) of income tax depreciation will only be claimed on amount paid by bank i.e. Rs 45000.
Hope this helps.
Hope this helps.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 15 November 2021
Depreciation should be claimed on 75000 rupees
sabyasachi mukherjee
(27579 Points)
Replied 15 November 2021
As per Accounting standard and relevant guidelines , the cost of asset is the sum paid for accquistion of asset whether in cash or kind till the asset is put to use.
As a result of the same depreciation must be calculated on the accquistion cost till it is put to use.
As a result of the same depreciation must be calculated on the accquistion cost till it is put to use.
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