cancel
Showing results for 
Search instead for 
Did you mean: 

New asset less than 180 days (india tax purpose) half of depreciation

Former Member
0 Kudos

In India, there is a requirement that the Depreciation for Income Tax should be calculated based on the date of Acquisition. If an asset has been acquired before or on completion of 180 days of a Financial Year, than the calculation of Depreciation is allowed for full year. If the asset has been acquired after 180 days , depreciation is allowed only for 180 days. Hence for an asset acquired on 25/09/2009, system should allow calculation of depreciation from 01/04/2009, assuming that the fiscal year starts from 01/04/2009 and ends on 31/03/2009. However, if the asset is acquired on 07/10/2009, the system should allow depreciation from 01/10/2009. Sap has delivered standard depreciation keys for the same in reference chart of depreciation for India 0IN.

But if the asset has been acquired on 01/10/2009, still the asset has to be depreciated from 01/04/2009, since the asset has been acquired for less than 180 days into the fiscal year. The system is working fine for asset capitalized on 25/09/2009 and 07/10/2009. But we are not able to map the same if asset is capitalized on 01/10/2009 and 02/10/2009. For these two dates, the depreciation should start from 01/04/2009.

I have checked the period control setting and calender assignments and everything seems to be in place. How can we tackle the issue?

Regards

suprita

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
0 Kudos

New Assets Held for Less Than 180 Days

If you purchase an asset less than 180 days before the end of the fiscal

year(financial year) , you are only entitled to depreciate it at half of the normal rate of

depreciation.

the example, on 1 oct 2011 its coming less than 180 days so according income tax we have to pay half of depreciation again next year its continue full depreciation you sell a truck for

IN 30,000. On 31 March the following year, instead of posting INR 3,000

depreciation, you can only post half of that, INR 1,500.

How to default setting this requirement

The system handles this requirement by taking half the acquisition cost and

calculating depreciation on that

Former Member
0 Kudos

Hi,

What setting you have done in OAVH against Key for period control in transactions (IT)

it is quite simple.

If it is april to march then for OCt - March assign period 6 in all the 6 periodsfor the rest .i.e from April to Sep leave it blank.

This will solve your problem

Regards,

Shayam

Former Member
0 Kudos

Hi,

plz explain wht settings need to do . am just trying last one months onwards. nt getting . plz send me details

in t code OAVH sep to march i assign 6 period

Former Member
0 Kudos

Hi,

If you are using april to march then your setting will be

FV Period Control Month Day Period

V3 IT 1 31 6

V3 IT 2 28 6

V3 IT 3 31 6

V3 IT 4 30

V3 IT 5 31

V3 IT 6 30

V3 IT 7 31

V3 IT 8 31

V3 IT 9 30

V3 IT 10 31 6

V3 IT 11 30 6

V3 IT 12 31 6

Assign IT (Period Control) in AFAMP against the Period control which you use in Dep key of IT dep against Acq and Addition.

Hope this will help.

Regards

Shayam

Former Member
0 Kudos

Dear Shayam,

I assigned oavh wht u told but its nt working,

Plz tell me wht are configuration need to do.

Base method , Declining balance method,Multi level method & depre keys wht rea keys need to maintain

Regards,

suprita

Former Member
0 Kudos

Hi,

What all the step you follow kindly let me know.

Regards

Shayam

Former Member
0 Kudos

This message was moderated.

Former Member
0 Kudos

Hi,

Please dont ask for the Personal IDs on this forum.

All the issues should be discussed in this forum only.

Let others know the solutions also.

Regards,

Shayam

Former Member
0 Kudos

Dear shyam,

i did all settings wht u told but its nt working.

plzzz

Regards,

suprita

Edited by: suprita9 on Sep 14, 2011 11:23 AM

Former Member
0 Kudos

1) BASE METHOD(IND1):type of dep:ord dep & method stated dep

Dep. after plnd.life end:no

Dep.below NBValue zero:no

Curb:no

2)IDefine Declining-Balance Methods:(I02)

10%

3)Define Declining-Balance Methods(M2), VALIDITY start(2 ordinary dep)

base value:01

4)PERIOD CONTROL/; IT

OAVH: SEP TO MAR MENTIONED 6 PERIOD

Former Member
0 Kudos

Dear shayam,

plz tell me how to over come this issues trying its not coming.

1) BASE METHOD(IND1):type of dep:ord dep & method stated dep

Dep. after plnd.life end:no

Dep.below NBValue zero:no

Curb:no

2)IDefine Declining-Balance Methods:(I02)

10%

3) multi level method:

Ordinary depre start date

basevalue 01& %

4)period control: acq: IT

add:IT

ret:IT

trn:IT

OAVH(sep to mar i mentain period 6)

REQUESTING U how to over come this issues.

regards

suprita

Former Member
0 Kudos

Hi shayma,

We are using EHP4 its not possible in this version. which one need to upgrate EHP5 OR SP 5.

What is the different of EHP5 OR SP 5.

Please let me know how to over come this issue.

Regards,

SUPRITA,

former_member182098
Active Contributor
0 Kudos

Some extent the following discussion is useful:

suggest you to search the forum.

Former Member
0 Kudos

Hi,

i tried but its not coming.

Regards,

suprita