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Former Member
Mar 10, 2009 at 07:35 AM

India-Group Asset Depreciation calcualtion problem

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A normal asset NA01 has been assigned to a Group Aset GA1

another normal asset NA02 has been assigned to the same Group asset GA1.

In India, there is a requirement of Income Tax Dep that, if the asset is in use for greater than 180 days then the asset should be depreciated for the entire year, else it should only be depreciated for 6 periods.

Fiscal year is V3 Apr-March

Grp Asset Dep rate is 10%.

NA01 is purchased on 01.04.2008 for 1000INR, so the dep should be charged for the entire year i.e. 100 INR, in the group asset GA1 for this acquisition.

NA02 is purchased on 01.10.2008 for 1000INR, so the dep should be charged only for 6 periods i.e. 50 INR, in the group asset GA1 for this acquisition. Whereas the sytem charges full 100 INR for this asset also.Because the Ord Dep Start date for GA1 has been assigned the value of 01.04.2008 when the acquisition of NA01was posted, so for NA02 also the system starts dep from 01.04.2008 instead of 01.10.2008.

Dep for GA1 should be 150(100 for NA01 + 50 for NA02) INR, but the system calcualtes 200 INR(100for NA01+100 for NA02)

How can the value of 150 INR be achieved for GA1 Dep?

Reagrds

Prachi