The Fixed Asset Register as provided by a Builder to the Association of a Residential Apartment with costs of Assets, are not right. The values provided by the Builder were notional and do not make sense. This is the third year since the Assn. has been set up and as the New Committee , how should we carryout a Depreciation Schedule as the initial values of the Assets were not right and in March 2020 , the Balance Sheet that will be prepared will be the third B/S ever since the Association was set up. How should we proceed. Continue to carry out a Depreciation Schedule from the values presented last year or establish a true evaluation now
You must mention True values as you are paying more tax because of claiming less depreciation, however as soon as you will increase the WDV questions will be raised regarding difference in opening and closing WDV so if you have proper bill then only you must change value of assets otherwise not.
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Thank you.
You can revalue your assets and put the difference in revaluation account.
Then, you can provide depreciation on revalued asset.
If the costs are not supported by the invoice then it is better to get the estimation of the valuer.
Hi,
Hope you are doing well !!
It is advisable to get the report from valuer. The depreciation would be charged on the value received from valuer.
You can do a fair valuation through a valuer and reinstate the books and the fixed asset register. The INocme-tax officer may question the additional depreciation. You should be able to justify the cost incurred on the asset. Take a valuation certificate from a professional as well.
Hello,
If the association does not possess the invoice, then a valuation should be done by a valuer. and accordingly, values can be increased and likewise depreciation.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Hello Sir,
In the absence of invoices,it is recommendable to get the value through registered value and charge the depreciation on the same.
Hi
It is advisable to have revalued figures and claim depreciation on that amount.
Hope it helps
