I got a gift (Car) from shopper stop, i paid Rs.125000 as a cost of car and Rs.25000 as a Gift Tax. My query is whether i should charge depreciation on Rs.125000 or Rs.150000.
Plz Urgent,
Thanks in advance
Pkala (CA Final (New Course)) (211 Points)
24 November 2010I got a gift (Car) from shopper stop, i paid Rs.125000 as a cost of car and Rs.25000 as a Gift Tax. My query is whether i should charge depreciation on Rs.125000 or Rs.150000.
Plz Urgent,
Thanks in advance
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 24 November 2010
Depriciation should be charged on 150000 only ..... Gift tax paid should be added to the cost of the car .
Regards
Madhusudan Kabra
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