India Tax Depreciation (group asset)

[Former Member]

Hi FICO experts,

I'm having some problem with depreciation calculation for group assets to adhere to India IT Tax Depreciation regulation. As per IT law,

1. asset acquired <180days shall be depreciated at 1/2 of the depreciation rate for the fiscal year

2. asset acquired >180days shall be depreciated at full rate for the fiscal year

I've created depreciation key with period control NL and IT, and configure 2 depreciaiton area i.e 01 for book and 02 for tax depreciation in India COD. 02-Tax depreciation is configured as managed at Group asset.

I created 2 Assets i.e Asset A and Asset B and both linked to Group Asset C. Say the depreciation rate is 15%

1. Asset A - Acquired on P1 of 2008 --> INR10000

2. Asset B - Acquired on P9 of 2008 --> INR10000

A & B are linked to Group Asset C in 02-Tax depreciation area.

When I view Group Asset depreciation, I noticed that the deprecition for 2008 computed as (1000015%)+(1000015%). Thus, although Asset B is still being depreciated at full rate of 15% instead of half of the rate.

Besides, is that normal that I'm not able to see depreciation at Asset A and Asset B in tax depreciation area 02 when they are managed at Group. I can only view the deprecation at Group asset C?

Appreciate help if anyone have similar experience. Thank you in advance.

rgds

WJ

[Former Member]

Hi,

If you want to adhere Indian IT laws then follow the below mentioned steps:

1. Maintain a relationship of 1:1 of AS01 & AS21, means when you create a new normal asset it should be tagged with a new group asset.

2. Try to use SAP standard delivered dep. keys.

3. Change asset value date determination in SPRO.

4. Tagged group asset into the normal asset master.

5. Check tax dep.figures under group asset.

Regards

Anuj Agarwal