Swan (Pvt.) Ltd. acquired machinery for ₹ 5,75,000 which included a GST of ₹ 75,000 eligible for the input tax credit. It borrowed ₹ 3,00,000 from a bank for the purchase of the said machine. Interest on the bank loan up to the date of usage of the machine was ascertained as ₹ 5,000. The machine was put to use from 15th September 2020. Assume the rate of depreciation at 15%. The eligible amount of deprecation will be –

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Question:Swan (Pvt.) Ltd. acquired machinery for ₹ 5,75,000 which included a GST of ₹ 75,000 eligible for the input tax credit. It borrowed ₹ 3,00,000 from a bank for the purchase of the said machine. Interest on the bank loan up to the date of usage of the machine was ascertained as ₹ 5,000. The machine was put to use from 15th September 2020. Assume the rate of depreciation at 15%. The eligible amount of deprecation will be –

1.₹ 90,000

2. ₹ 78,750

3.₹ 86,250

4. ₹ 75,000

Posted by R4R Team
  1. Swan (Pvt.) Ltd. acquired machinery for ₹ 5,75,000 which included a GST of ₹ 75,000 eligible for the input tax credit. It borrowed ₹ 3,00,000 from a bank for the purchase of the said machine. Interest on the bank loan up to the date of usage of the machine was ascertained as ₹ 5,000. The machine was put to use from 15th September 2020. Assume the rate of depreciation at 15%. The eligible amount of deprecation will be –
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