Depreciation on livestock (dogs)

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Whether depreciation can be claimed on livestock( dogs) ? if yes at what percentage?

 

Replies (5)

AS per As-6 Livestock and other assets are not covered in AS-6 so no depreciation is charged on it nor any rate is prescribed for such.. But as far as accounting concern we can show the same in our financial statement and charge depreciation on  experts valuation. 

An asset which covered under definition of capital asset should be provided depreciation.but live stock is exempted!furthur proceeds from sale of dead bodies of livestock are treated as business income

As per AS-6, Livestock and some other specified assets are out of scope of AS-6. Hence Such assets are not depreciable & no depreciation wll be provided on the same.

Such assets will be shown at their market value in the books

From Income tax perspective::

Under sec 36(1)(vii), Animals used for the purpose of business or profession otherwise than as stock in trade and have died or permantentely unused

Deduction = Amount if any realised - Cost of live stock

and no depreciation is allowed as per IT as well as per Companies Act

thanks for d comments


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