Please Help: Depreciation on Lift Installed in Rented Building .
Posted Date : 08-Jun-2013 , 11:26:34 am | Posted By Devendra Ranka
Whether Depreciation will be allowable on Installation of Lift In Rented Office Building ? or it may be consider as revenue expenses ?
Category : Accounts | Answers : 2 | Comments : 1 | Hits : 190
Answers
Answer By: Vikash Kumar Jha
It should be treated as revenue expense but if there is a spefic time period given in rent agreement then you can treate depreciable assets for that specified period.
Answer By: Vaneet Gupta
yes allowed. Depreciation period will be lesser of the useful life of the Lift or Rent agreement period
Comments
Devendra Ranka
14-Jun-2013 , 10:38:38 amThanks Vikash Ji, I want to provide further information that Building was owned by Other group companies & Period of Rant agreement is life time i.e. it will be renew everytime at the time of Expiry. If you have any case law reference plz also mentioned