Please Help: Depreciation on Lift Installed in Rented Building .
Posted Date : 08-Jun-2013 , 11:26:34 am | Posted By: Devendra Ranka
Category :
Accounts | Answers :
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Comments :
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Whether Depreciation will be allowable on Installation of Lift In Rented Office Building ? or it may be consider as revenue expenses ? |
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Answers:
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 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.
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| Answer by: Vaneet Gupta |
| yes allowed. Depreciation period will be lesser of the useful life of the Lift or Rent agreement period
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| Comments |
| Posted By : Devendra Ranka |
14-Jun-2013, 10:38:38 |
| Thanks 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 |
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