krishna iyer (Sr.Finance Manager) (197 Points)
23 February 2009DEAR SIRS,
PLANT & MACHINERY ITEMS ARE PURCHASED , ERECTED DURING CURRENT FINANCIAL YEAR IE.MECHANICAL COMPLETION OF OF PLANT IS OVER. BUT PRODUCTION FROM THE PLANT WILL TAKE PLACE NEXT FINANCIAL YEAR ONLY.
CAN IT DEPRECIATION BE CLAIMED DURING THE CURRENT FINANCIAL YEAR BASED ON MECHANICAL COMPLETION OFPLANT & MACHINERY.
LAXMIKANT JAIPURKAR
(Practicing Company Secretary/Tax Consultant)
(403 Points)
Replied 23 February 2009
No. The depreciation will be allowed only if the machinery is used for the manufacuturing/production.
Abhinav Agarwal
(M.Com C.A SAP Consultant)
(814 Points)
Replied 23 February 2009
IT depreciation can only be claimed if the asset is put to use. As the asset will be used next year, you can claim dep from next year onwards. However, the cost to be taken in books for such machinery next year will be governed by Sec 42(1)
laxman suthar
(Asst. Manager Taxtation )
(329 Points)
Replied 24 February 2009
Deprication can be claimed if assets is ready to put to use
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