UGC NET
   Top Resources
profile-img
Eduncle posted an MCQ
October 13, 2019 • 22:49 pm 0 points
  • UGC NET
  • Commerce

An equipment was acquired at a cost of Rs 10 lacs and was put to use in Scientific Research. After one year of research the equipment was brought into another b

An equipment was acquired at a cost of Rs 10 lacs and was put to use in Scientific Research. After one year of research the equipment was brought into another business of the assessee. For charging depreciation, Block of Assets shall be increased by

Choose Your Answer:
0 Attempts Submit Now
  • 0 Likes
  • 1 Comments
  • 0 Shares
  • comment-profile-img>
    Eduncle Best Answer

    NIL 
    An equipment was acquired at a cost of  Rs. 10 lacs and was put to use in Scientific Research. After one year of research the equipment was brought into another business of the assessee. For charging depreciation, Block of Assets shall be increased by NIL.
    No depreciation will be charged in the following cases :
    (i) If WDV of the BOA is reduced to zero, though the block of assets does not ceases to exist on the last day of the previous year; or
    (ii) If BOA is empty or ceases to exist on the last day of the previous year, though the WDV is not zero (*In such cases WDV of the block on the first day of the next previous year will be taken as Nil); or
    (iii) If any imported car is used for the purpose of business or profession in India which is acquired during March 1, 1975 and March 31, 2001. If, however, such imported car is used in the business of running it on hire for tourist or for the purpose of business or profession outside India, then depreciation is admissible at the usual rate.

whatsapp-btn

Do You Want Better RANK in Your Exam?

Start Your Preparations with Eduncle’s FREE Study Material

  • Updated Syllabus, Paper Pattern & Full Exam Details
  • Sample Theory of Most Important Topic
  • Model Test Paper with Detailed Solutions
  • Last 5 Years Question Papers & Answers

Sign Up to Download FREE Study Material Worth Rs. 500/-