1/22/2018 New asset less than 180 days (india tax purpose) half of depreciation

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New asset less than 180 days (india tax

purpose) half of depreciation
In India, there is a requirement that the Depreciation for Income Tax should be calculated based on the date
of Acquisition. If an asset has been acquired before or on completion of 180 days of a Financial Year, than
the calculation of Depreciation is allowed for full year. If the asset has been acquired after 180 days ,
depreciation is allowed only for 180 days. Hence for an asset acquired on 25/09/2009, system should allow

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1/22/2018 New asset less than 180 days (india tax purpose) half of depreciation

calculation of depreciation from 01/04/2009, assuming that the fiscal year starts from 01/04/2009 and ends
on 31/03/2009. However, if the asset is acquired on 07/10/2009, the system should allow depreciation from
01/10/2009. Sap has delivered standard depreciation keys for the same in reference chart of depreciation for
India 0IN.

But if the asset has been acquired on 01/10/2009, still the asset has to be depreciated from 01/04/2009,
since the asset has been acquired for less than 180 days into the fiscal year. The system is working fine for
asset capitalized on 25/09/2009 and 07/10/2009. But we are not able to map the same if asset is capitalized
on 01/10/2009 and 02/10/2009. For these two dates, the depreciation should start from 01/04/2009.

I have checked the period control setting and calender assignments and everything seems to be in place.
How can we tackle the issue?

Regards

suprita

(https://people.sap.com/suprit.m)

suprit m (https://people.sap.com/suprit.m)
October 13, 2011 at 14:07 PM
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14 replies

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suprit m (https://people.sap.com/suprit.m)replied

September 02, 2011 at 11:11 AM

New Assets Held for Less Than 180 Days

If you purchase an asset less than 180 days before the end of
the fiscal

year(financial year) , you are only entitled to depreciate it at

half of the normal rate of

depreciation.

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1/22/2018 New asset less than 180 days (india tax purpose) half of depreciation

the example, on 1 oct 2011 its coming less than 180 days so
according income tax we have to pay half of depreciation
again next year its continue full depreciation you sell a truck
for

IN 30,000. On 31 March the following year, instead of posting

INR 3,000

depreciation, you can only post half of that, INR 1,500.

How to default setting this requirement

The system handles this requirement by taking half the

acquisition cost and

calculating depreciation on that

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Shayam Sharma (https://people.sap.com/shayam.sharma)replied September 05, 2011 at 09:19 AM

Hi,

What setting you have done in OAVH against Key for period control in transactions (IT)

it is quite simple.

If it is april to march then for OCt - March assign period 6 in all the 6 periodsfor the rest .i.e
from April to Sep leave it blank.

This will solve your problem

Regards,

Shayam

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suprit m (https://people.sap.com/suprit.m)replied

September 12, 2011 at 21:00 PM

Hi,

plz explain wht settings need to do . am just trying last one

months onwards. nt getting . plz send me details

in t code OAVH sep to march i assign 6 period

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1/22/2018 New asset less than 180 days (india tax purpose) half of depreciation

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Shayam Sharma (https://people.sap.com/shayam.sharma)replied September 13, 2011 at 06:42 AM

Hi,

If you are using april to march then your setting will be

FV Period Control Month Day Period

V3 IT 1 31 6

V3 IT 2 28 6

V3 IT 3 31 6

V3 IT 4 30

V3 IT 5 31

V3 IT 6 30

V3 IT 7 31

V3 IT 8 31

V3 IT 9 30

V3 IT 10 31 6

V3 IT 11 30 6

V3 IT 12 31 6

Assign IT (Period Control) in AFAMP against the Period control which you use in Dep key
of IT dep against Acq and Addition.

Hope this will help.

Regards

Shayam

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suprit m (https://people.sap.com/suprit.m)replied

September 13, 2011 at 16:58 PM

Dear Shayam,
https://archive.sap.com/discussions/thread/2029918 4/9
1/22/2018 New asset less than 180 days (india tax purpose) half of depreciation

I assigned oavh wht u told but its nt working,

Plz tell me wht are configuration need to do.

Base method , Declining balance method,Multi level method

& depre keys wht rea keys need to maintain

Regards,

suprita

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Shayam Sharma (https://people.sap.com/shayam.sharma)replied September 14, 2011 at 06:40 AM

Hi,

What all the step you follow kindly let me know.

Regards

Shayam

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Shayam Sharma (https://people.sap.com/shayam.sharma)replied September 14, 2011 at 10:11 AM

Hi,

Please dont ask for the Personal IDs on this forum.

All the issues should be discussed in this forum only.

Let others know the solutions also.

Regards,

Shayam

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1/22/2018 New asset less than 180 days (india tax purpose) half of depreciation

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suprit m (https://people.sap.com/suprit.m)replied

October 12, 2011 at 08:30 AM

Hi shayma,

We are using EHP4 its not possible in this version. which one
need to upgrate EHP5 OR SP 5.

What is the different of EHP5 OR SP 5.

Please let me know how to over come this issue.

Regards,

SUPRITA,

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Ravi Sankar Venna (https://people.sap.com/ravisankar.venna)replied

October 12, 2011 at 13:42 PM

Some extent the following discussion is useful:

Indian Income Tax Depreciation Calculation

(/discussions/thread/1012429)

suggest you to search the forum.

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suprit m (https://people.sap.com/suprit.m)replied

October 13, 2011 at 14:07 PM

Hi,

i tried but its not coming.

Regards,
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1/22/2018 New asset less than 180 days (india tax purpose) half of depreciation

suprita

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suprit m (https://people.sap.com/suprit.m)replied

September 14, 2011 at 11:35 AM

Dear shyam,

i did all settings wht u told but its nt working.

plzzz

Regards,

suprita

Edited by: suprita9 on Sep 14, 2011 11:23 AM

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suprit m (https://people.sap.com/suprit.m)replied

September 14, 2011 at 13:10 PM

1) BASE METHOD(IND1):type of dep:ord dep & method
stated dep

Dep. after plnd.life end:no

Dep.below NBValue zero:no

Curb:no

2)IDefine Declining-Balance Methods:(I02)

10%

3)Define Declining-Balance Methods(M2), VALIDITY start(2

ordinary dep)

base value:01

4)PERIOD CONTROL/; IT

OAVH: SEP TO MAR MENTIONED 6 PERIOD

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1/22/2018 New asset less than 180 days (india tax purpose) half of depreciation

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suprit m (https://people.sap.com/suprit.m)replied

September 14, 2011 at 14:35 PM

Dear shayam,

plz tell me how to over come this issues trying its not coming.

1) BASE METHOD(IND1):type of dep:ord dep & method

stated dep

Dep. after plnd.life end:no

Dep.below NBValue zero:no

Curb:no

2)IDefine Declining-Balance Methods:(I02)

10%

3) multi level method:

Ordinary depre start date

basevalue 01& %

4)period control: acq: IT

add:IT

ret:IT

trn:IT

OAVH(sep to mar i mentain period 6)

REQUESTING U how to over come this issues.

regards

suprita

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