depreciation on second hand asset
Satish Makam (Asst. Manager - Accounts) (294 Points)
19 September 2010
7 Replies
@rinssss
(ca)
(119 Points)
Replied 19 September 2010
On Purchase value including its installation cost and repairs on it (if any).It is bcoz the Co. has only purchased machinery from the firm and not the whole firm.
Amit
(Chartered Accountant B.Com(H))
(453 Points)
Replied 19 September 2010
Dear sir you can claim the depreciation on actual cost of the asset . As per section 43(1) actual cost means actual cost of asset to the assesee [reduced by that portion of the cost which has been directly or indirectly met by any other person]
However there there are 13 explanation which provide determination of actual cost of acquisition under different circumstances. But your case on the basis of the fact you have given dose not fall in any of those explanation.-Yet the explanation 3 gives power to your assessing officer to determine the actual cost with prior approval of joint commissioner to ascertain whether you have acquired the asset at higher price .
Thus the price you have paid to acquire the asset shall be the Cost of acquisition of the assets . Yes the entire cost up to the installation of the asset shall also be considered.
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 19 September 2010
yes u can claim depreciation on ur aquisition cost...
SUDHIR & PRADEEP JI
(CA FINAL+LLB + DISA)
(2299 Points)
Replied 19 September 2010
On Purchase value including its installation cost and repairs on it (if any).It is bcoz the Co. has only purchased machinery from the firm and not the whole firm.
Amit
(Chartered Accountant B.Com(H))
(453 Points)
Replied 19 September 2010
Dear pradeep please clear me on the cost of acquisition of the machinery if the company as acquired the entire firm and not just machinery.
I think in that case value assinged to individual assets to determine the purchase price of partnership firm shall be consider. please help me
chandan s r
(thinking logical IPCC wods for all subject)
(24 Points)
Replied 13 March 2017
Sir even charge on acquisition asset or value purchase asset on assessing officer doubt explanation 2
chandan s r
(thinking logical IPCC wods for all subject)
(24 Points)
Replied 18 March 2017
according taxation second hand. macinary additional depreciation
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