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Naveen Gupta (CA ) (123 Points)

06 December 2010

Can any one tell me that whether additional depreciation @ 20% is available on addition due to foreign exchange u/s 43A????

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praveen (Chartered Accountant) (6971 Points)
Replied 06 December 2010

I think you can charge additional depreciation on the same as we will charge normal depreciation on such amount.

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Naveen Gupta (CA ) (123 Points)
Replied 06 December 2010

@ praveen: but additional depreciation is allowable only on new assets, than how it could be availed????

(Guest)

Originally posted by : Naveen Gupta
	@ praveen: but additional depreciation is allowable only on new assets, than how it could be availed????

same question from me to praveen ...

i think it can not be avail coz additional dep. can be claimed on new assets.

let the senior be comment here...

CA. MUKESH KUMAR (CHARTERED ACCOUNTANT) (183 Points)
Replied 06 December 2010

if addition u/s 43A is in the same year in which assets is put to use then you claim it.

Naveen Gupta (CA ) (123 Points)
Replied 06 December 2010

@ mukesh: but if addition is in different year, than what?????

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sajay kumar (IPCC STUDENT) (162 Points)
Replied 06 December 2010

yes additional depreciation will be provided on new machinaries only. it is for the purpose of encouraging manufacturing industries

(Guest)

Additinal dep is available to manufacturing companies for using new machinories , n that same should b claimed in the year it is acquired. If it is used for less than 180 days then at half rate otherwise at full rate of 20 %.

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AAKASH KASHYAP (AUDIT ASSISTANT) (25 Points)
Replied 06 December 2010

CONCEPT OF ADDITIONAL DEPRICIATION ARISES ONLY IN CASE OF MANUFACTURING INDUSRTIES and no where else under the entire IT ACT

REFER SECTION 32 (1) (ii a) FOR FURTHER DETAILS.

CA. ROHIT GUPTA (Service) (133 Points)
Replied 07 December 2010

Ya Aakash is right, additional dep. is not available here.

QUOTE, As per Sec 32(1)(iia)

[(iia) in the case of any new machinery or plant (other than ships and aircraft), which has been acquired and installed after the 31st day of March, 2005, by an assessee engaged in the business of manufacture or production of any article or thing, a further sum equal to twenty per cent of the actual cost of such machinery or plant shall be allowed as deduction under clause (ii) :

Provided that no deduction shall be allowed in respect of—

(A) any machinery or plant which, before its installation by the assessee, was used either within or outside India by any other person; or

(B) any machinery or plant installed in any office premises or any residential accommodation, including accommodation in the nature of a guest-house; or

(D) any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head “Profits and gains of business or profession” of any one previous year;