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Indian Income Tax Depreciation Calculation

Hi

Can any of you please explain/tell me where are the exact SAP configuration settings for the calculation of depreciation calculation as per Indian Income Tax Act by meeting below requirements as per Section 32 of Indian Income Tax Act:

1. If the Asset is being purchased and used in a Financial Year for 180 Days or below 180 Days - Depreciation has to be calculated 50% of Annual Depreciation.

2.If the Asset is being purchased and used in a Financial Year for more than 180 Days - Depreciation has to be calculated 100% of Annual Depreciation.

Waiting for your valuable reply.

Thanks and Regards

P.V.S.R.Gupta

Former Member
replied

Hi,

I have no in depth knowledge to india specific tax requirements. But from your description this sounds to me like the normal "half-year convention" in the capitalizaton year. You can specify the period rule 4 (First year convention at half year start date) in the period control assigned to the depreciation key for "acquisitions". This should fulfill your requirements.

I am sorry, but I do not know if there are already preconfigured depreciation keys delivered by SAP to fulfill that reqiurement. If not I would use my proposal.

Regards,

Markus

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