madhur gupta (student/article ) (1022 Points)
30 August 2010Hello firendzz here is one querry relates to dep
block value on 01.04.2009 rs.100000
additions made before 30.09 are rs.500000 on mew machinery eligible for additional dep
one out of block sold in dec for rs.500000(not purchased one as it is but from block)
now closing block value rs.100000 left and we will charge additional ep on which value i.e. at 500000 @ 20% and if yes then will i sustain loss of normal dep as aftr additnl dep block will be nil????
plz clarify in this regard
thnxx
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 30 August 2010
First allow depreciation on Rs. 100000 @ 15 %. this amount is rs. 15000.
Now your additional deprecation is Rs. 100000 but ur balance value is Rs. 85000, so u can claim only 85000 and no carry forward is allowed.
madhur gupta
(student/article )
(1022 Points)
Replied 31 August 2010
Thnx manish!!!
but are u sure that first we will deduct normal dep.
as generally in books quest they first additional dep
plz clarify in this regard
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 31 August 2010
Yes... we will first deduct normal depreciation
CAclubindia
