Depreciation in case of cash system of accounting
CA Vaibhavi (Chartered Accountat) (88 Points)
12 April 2012CA Vaibhavi (Chartered Accountat) (88 Points)
12 April 2012
Mihir Doshi
(B.Com, CA, CS, LLB)
(2187 Points)
Replied 12 April 2012
Dear Vaibhvi, Depreciation on Fixed Asset is provided from the date asset is put to use. It would be tantamount to cooking of books if you provide Depreciation based on advance payment.
Section 32 will be read before applying the method as assumed by you.
Thanks
Mihir Doshi
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