Dear Freinds,

 

How to calculate opening WDV of Fixed assets as per IT, since the client is required to undergo tax audit from this AY and previously no tax audit was conducted.

Posted 2 years, 11 months ago by Vedanta Deshika


You need to take the cost of the assets and calculate depreciation from the date of put to use. Even if tax audit was not applicable that time, depreciation had to be calculated.

Posted 2 years, 11 months ago by CA Pulkit Sharma


Whether Tax audit is done or not should not affect the applicability of Depreciation. As per Section 32(1) Depreciation even if not claimed by assessee the depreciation is to be allowed. (from AY 2002-03).

In your case make the WDV workings from the Assessment year the assets were purchased and provide depreciation as per Income Tax Act.

Again for the current year provide depreciation on opening WDV arrived. 

Posted 2 years, 11 months ago by Rahul Rai


Thanks rahul rai and pulkit

Posted 2 years, 11 months ago by Vedanta Deshika


Your Reply:

You need to be logged in to reply.