Group Asset Isssue -URGENT

[Former Member]

I have configured the Group Assets for tax depreciation.For each asset we have to assigne Group asset while creating asset master.So,,,,the issue is...when group asset created we gave the capitalized date as 01/04/2008.but we created normal asset on 01/05/2008. the problem is Depreciation is calculating from 01/04/2008 even though the asset is capitalized on 01/05/2008.How to overcome this issue?

Please give me suggestions

Should separate group assets be created for each normal asset with different capitalization dates?

Thanks

[Former Member · Accepted solution]

I Hope you are talking from the Indian Implementation paralance.

In that case what the system is doing is correct provided the depreciation is calculated for the half year.

If you are using the group asset concept for Indian Tax depreciation then the calculation is like this.

For this example I will take my APC aas 100,000/- and teh rate of depreciation applicable as 10%.

As long as the asset is acquired on or before 30th of September you can claim the entire depreciation (i.e 10000/-) in this case a sper IT act. Hence if this is the case that is applicable then what the system proposing is correct.

If teh date of acquisition is on or after 1st October, you are eligible to have a depreciation equivalent to 1/2 of the total amount eligible. In other words this will be 5000/-

In any case you define the group asset as per the law and not per asset.

If this is not the scenario then check teh period control for the depreciation key that you are using.

Hope this will solve your problem.

Reward if useful.

sarma