05-29-2010, 06:34 AM
Dear,
Section 22(1) states that the asset being used in the business will be entitled to have a deprciation on it, further more the depriciation on the assets will be allowed keeping in view the production capacity & usagae of assets not merely the possession in many cases, such as new machinary imported will be expected to increase the production & if the production is not increased no such deduction will be allowed unless the new machinary is proven as the replacement of old machinary/asset
Since you have quoted SECP & IAS16 are in complete agreement about the depriciation policy of assets, it is very clear that tax calculations are normaly not in line, while calculating thetaxable income, to IAS/IFRS & Corporate laws
regards,
Section 22(1) states that the asset being used in the business will be entitled to have a deprciation on it, further more the depriciation on the assets will be allowed keeping in view the production capacity & usagae of assets not merely the possession in many cases, such as new machinary imported will be expected to increase the production & if the production is not increased no such deduction will be allowed unless the new machinary is proven as the replacement of old machinary/asset
Since you have quoted SECP & IAS16 are in complete agreement about the depriciation policy of assets, it is very clear that tax calculations are normaly not in line, while calculating thetaxable income, to IAS/IFRS & Corporate laws
regards,
