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Is depreciation mendatory

ram gopal (zzz) (49 Points)

02 September 2012

Is DEPRECIATION is mendatory if we are not using a asset for buisness purposes?

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5 Replies

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 03 September 2012

If the asset is not being shown in the business, then no depreciation is requried to be provided.

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ram gopal (zzz) (49 Points)
Replied 04 September 2012

if there is a company and shown that asset in the books of account under head fixed assets?? then what whould you come to say?

varun (article assistant) (86 Points)
Replied 05 September 2012

if they show that asset in the books of the company means depreciation shoul be provided.

ranjithsingh (Chartered Accountant) (153 Points)
Replied 05 September 2012

there is a alternate to Varun's view, if the asset is meant for trading purpose then there is no need of providing the depreciation. according to Varun's view there may be chance of maintaining the stock register then the depreciation cannot be provided.

ram gopal (zzz) (49 Points)
Replied 05 September 2012

if that assets is not being used for buisness purposes but shown as fixed assets, then it will be mandatory for charging depriciation!! i want to know that answer as yes or not! in my opinion it should be mandatory because if an assesse is not claiming depriciation then no deduction is available to him under chapter vi