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Depreciation

287 views 7 replies

bdj

propreitor

42 Points Joined January 2018

Hello,

My client has purchased a Tempo for transporting goods for his business. I have already availed ITC on the same purchase. Can I also take Depreciation on the purchase price(minus tax component) ? For eg. My client paid 160000 (125000 price of the tempo and 35000 gst amount). Can I claim depreciation on 125000 after claiming 35000 as ITC.

Replies (7)

Chhalani and Associates

CA - www.cachhalani.com

142 Points Joined October 2014

Yes.. u can claim depn on 1.25 L.

Shivam RC

Student

23688 Points Joined November 2017

Yes you can claim Depreciation on Rs.1,25,000 @ 15% on tempo u/s 32 of the Income Tax Act 1961.

RAJA P M

"Do the Right Thing...!!!"

128147 Points Joined January 2015

Yes... You (client) can claim depreciation for the Basic value like as 125000...

pritesh

CA Final student

7106 Points Joined April 2018

Yez you can claim deprecation

bdj

propreitor

42 Points Joined January 2018

Thanks. But i am confused regarding percentage now. Is it 40% or 15% ? . I believe 15% is for OTHER THAN THOSE USED IN BUSINESS. and mine is used in business. Can it not termed as Commercial vehicle on which depreciation is 40%.

Please advice.

DARSHIT RATHOD

27 Points Joined May 2019

firstly, as per sec 17 of gst itc on vehicle purchased other then a service providers is disallowed. So entire 160000 will be capitalised and depreciation will be claimed on entire 160000.

MINAL

Advocate

39 Points Joined December 2014

My client is service provider . He is into business of buying and selling of paper bags and other items and uses tempto to transport those goods from his shop to clients shop. Tempo is fully used for business purpose... So why cant we claim ITC ?