Amber Jain (Article Assistant) (206 Points)
03 June 2013Hello,
If some one is having a properiotorship firm and he has purchased a second hand vehicle so whether depreciation on the same can be claimed and if yes at original cost of asset at which previous owner has acquired or at our cost of acquisition.
Thanks & Regards
Amber Jain
CA.Vinita Gupta
(Deputy Manager- Finance)
(2923 Points)
Replied 03 June 2013
At the cost of acquisition not Original Cost
Amber Jain
(Article Assistant)
(206 Points)
Replied 03 June 2013
but if the orignal owner has taken the benefits of depreciation then what is the effetcs to be given.
M.Sriram Shenoy
(CA Final)
(814 Points)
Replied 03 June 2013
Depreciation should be calculated on cost of acquisition. If previous owner has claimed the benefit of depreciation, then the subsequent owner has to determine the useful life of the asset depending upon its functional capacity and depreciate the asset based on that.
Mihir Manohar
(CA Final - Article Assistant)
(474 Points)
Replied 03 June 2013
Depreciation will be claimed on the Acquistion cost under S.32 under the corcerned Block.
CAclubindia
