Hemanth Sai (CA-FINAL,AUDIT TRAINEE) (110 Points)
01 August 2011My client has not provided depreciation in ac's for buildings saying that the buildings are generating rental income rather it is not used for bussiness purporse. Is It right doing so???
kamal kishor sen
(STUDENT Rajasthan)
(2156 Points)
Replied 01 August 2011
Yes he is right, because rent generating from building is taxable under House Property Head and there is a Standard deduction of 30 % , so no need to claim depreciation.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 01 August 2011
| Originally posted by : kamal kishor sen | ||
 |
Yes he is right, because rent generating from building is taxable under House Property Head and there is a Standard deduction of 30 % , so no need to claim depreciation. |
 |
agreed
Hemanth Sai
(CA-FINAL,AUDIT TRAINEE)
(110 Points)
Replied 30 September 2011
i was saying about the impact in the books of accounts as per companies act and not for it computation as per it act.
i think even it is used for bussiness or not depreciaation should be provided in the books of ac;s as per the co's act
Z
( )
(2965 Points)
Replied 30 September 2011
Also as per AS-6 Depriciation , para 3.2 Depreciable assets are assets which
(i) are expected to be used during more than one accounting
period; and
(ii) have a limited useful life; and
(iii) are held by an enterprise for use in the production or supply of
goods and services, for rental to others, or for administrative
purposes and not for the purpose of sale in the ordinary course
of business.
Since its within the scope of depriciable asset, depriciation should be charged on the above asset
CAclubindia
