Hey friends,what will be the rate of depreciation of a land(total 11000 sq.ft.) in which building has been constructed on 2000 sq. ft. and on remaining 9000 sq. ft. shed has been constructed???
Ritesh Khaitan (Pracice & Business) (148 Points)
16 July 2012Hey friends,what will be the rate of depreciation of a land(total 11000 sq.ft.) in which building has been constructed on 2000 sq. ft. and on remaining 9000 sq. ft. shed has been constructed???
Sai krishna
(Articled assistant)
(21 Points)
Replied 16 July 2012
CA Tushar Singhania
(Asst. Manager Accts & Fin.)
(402 Points)
Replied 18 July 2012
I have attached a depriciation rate chart for your perusal. there will be no depriciation on land only superstructure constructed on them would be depriciable as per the file enclosed.
If the land is a lease hold land then the lease premium would be propotionetly written off over the life of the lease, further if any land development charges have been incurred then such expeneses would be added to the leasehold value and written off accordingly
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