If an asset is purchased and the same is not used for the financial year, should the company charge the depreciation and the reason for the same

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anil_sheoran

  • Mar 23rd, 2010
 

Yes, we will charge depreciation on that asset which is not used in financial year because after some some time its value will be reduced by obsolescences.

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Suresh Purohit

  • Feb 22nd, 2012
 

As per income tax law can not claim depreciation but as per company act we can claim it. If assets are machinery & it is ready to use but not used during period we can claim for depreciation because machinery is ready for use & company have certificate & bills for installation of machinery.

Regards
Suresh

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AVINASH KUMAR PASWAN

  • Jul 5th, 2015
 

Companies Act mandates to claim depreciation as soon as company(assesse) purchased an assets and take the ownership, relevant use in the business is not necessary at all. But so far Income Tax is concerned sec 32 mandates to claim depreciation only when assets is actually put to use in the business whether actively or passively.

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Navjot Singh

  • Oct 7th, 2015
 

The assets which is used for business purpose in the previous year then we can claim depreciation otherwise we cant.

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AMIT KUMAR SINGH

  • Jan 17th, 2016
 

If an asset is purchased during the financial year and it is not been put to use even for a single day, then the depreciation cant be claimed. If its been use even for a single day then the depreciation should be charged for 180 days.

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