In case of additional depreciation to industrial undrtakings, if asset was acquired on 1st may 2010 and put to use in next year say 1st may 2011. Will additional depr be available?
12 Replies
sumit jain
(.)
(844 Points)
Replied 13 October 2011
Additional depreciation is available in the first year in which the asset is put to use..
(I am assuming that all other conditions are satisfied)
IPSA ;)
($)
(611 Points)
Replied 13 October 2011
no... its available on new assets only..i.e. in d 1st year...
sumit jain
(.)
(844 Points)
Replied 13 October 2011
| Originally posted by : (: ..ISP** | ||
 |
no... its available on new assets only..i.e. in d 1st year... |
 |
The phrase new asset here means that the asset should not be Second hand asset (A few exceptions)
Additional depreciation is available in the year in which the new (not second hand) asset is installed or put to use.. There is no condition that the asset should be installed in the same year in which it is purchased , to claim additional depreciation
Rahul
(Chartered Accountnat CS)
(1580 Points)
Replied 13 October 2011
Thanx. So hear in my case i will get 10 % additioonal depr on NEW asset for PY 2010-11 and 0% add depr in PY 2011-12. Am i correct?
Z
( )
(2965 Points)
Replied 13 October 2011
Additional depriciation (sec 32(1)(iia)) is to be allowed ONLY in the FIRST year in which the asset is installed and put to use and when asset is put to use for less than 180 days then depriciation amount will be 50% of additional depriciation (which i think is 20% of actual value of plant and machinery)
10% additional dep if used less than 180 days in first year
if not used then 0 % and further additional depriciation can not be claimed
sec 32(1)(iia) conditions www.indiataxes.com/Information/depreciation.htm
Swapnil Jain
(Finance - FP&A)
(564 Points)
Replied 13 October 2011
| Originally posted by : Z | ||
|
|
Additional depriciation (sec 32(1)(iia)) is to be allowed ONLY in the FIRST year in which the asset is installed and put to use and when asset is put to use for less than 180 days then depriciation amount will be 50% of additional depriciation (which i think is 20% of actual value of plant and machinery) 10% additional dep if used less than 180 days in first year if not used then 0 % and further additional depriciation can not be claimed sec 32(1)(iia) conditions www.indiataxes.com/Information/depreciation.htm |
|
agreed
Rahul
(Chartered Accountnat CS)
(1580 Points)
Replied 13 October 2011
So in my cas 0% is add. depr ???????????
nupur
(employee)
(112 Points)
Replied 13 October 2011
Additional depreciation can be claimed in the year when the asset is put to use and not the year of purchase , rest all other conditions is satisfied to claim additional deprecation .
Nitesh Matta
(Nothing)
(198 Points)
Replied 13 October 2011
nope.. additional depreciation will not be avialable as the asset was not at all used.. Depreciation will not be if the asset is not used at all..
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