8 Replies
CA Saba Naaz
(Chartered Accountant)
(8487 Points)
Replied 03 December 2010
As per the Income Tax Act...depreciation will be calculated at 50% of the rate of depreciation because though the machinery has been acquired for more than 180 days , but put to use for less than 180 days.
Paresh Rathod
(CA)
(222 Points)
Replied 03 December 2010
As per Income Tax Act
The asset must be(put to use) used in the business. If it is only partly used for business, depreciation would be allowable on pro-rata basis;
The asset must be used during the relevant financial year. If an asset is purchased and put to use for less than 180 days, that is, on or after the first day of October, only 50 per cent of the normal depreciation will be allowed in that year. In the subsequent years however, the asset will be subject to depreciation at the normal rates. So if an assessee buys a machine on 1 September 2009 but does not put it to use before 1 December 2009, he will be allowed depreciation at 7.5 per cent (instead of the normal 15 per cent) for the financial year ended 31 March 2006. The crucial date is the date of putting the asset to use.
Suppose a Person purchased a Car on 31st March and put to use on same date even then he can claim 50% of the depreciation of the full year i,e 7.5%(50% of 15%)
Paresh Rathod
(CA)
(222 Points)
Replied 03 December 2010
As per companies ACt
DEPRECIATION IS CHARGED FROM THE DATE WHEN IT WAS FIRSTY READY TO USE .
As per my opinion plz confirm.
Dheeraj
(Learner)
(1100 Points)
Replied 04 December 2010
for income tax purpose the tax rate is 15% for machinery if it is put to use for more than 180 days and for lesser period it will be half i.e 7.5%..
so in ur case it is to be 7.5%
and in case of computation of depreciation as per companies act...
the calculation is made day wise..
i.e from the date when the machinery is purchased
in ur case the date is 01/04/2010
Anurag Agarwal
(CA Final, Advocate)
(292 Points)
Replied 05 December 2010
In Short....depreciation will be charged @ 7.5%(half of 15%) as it is put to used in less than 180 days i.e 01/11/2010..
Parankusa
( )
(78 Points)
Replied 06 July 2012
Could some one tell where is it stated that depreciation is to be charged from date when it is ready to use?
Deepak
(self accountant)
(21 Points)
Replied 07 July 2012
I want to knwo how much depriciation will be charged on electronic weight machine (Electronic Kanda)
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