India Tax Depreciation (group asset)

Hi FICO experts,
    I'm having some problem with depreciation calculation for group assets to adhere to India IT Tax Depreciation  regulation. As per IT law,
  1. asset acquired <180days shall be depreciated at 1/2 of the depreciation rate for the fiscal year
  2. asset acquired >180days shall be depreciated at full rate for the fiscal year
    I've created depreciation key with period control NL and IT, and configure 2 depreciaiton area i.e 01 for book and 02 for tax depreciation in India COD. 02-Tax depreciation is configured as managed at Group asset.
    I created 2 Assets i.e Asset A and Asset B and both linked to Group Asset C. Say the depreciation rate is 15%
1. Asset A - Acquired on P1 of 2008 --> INR10000
2. Asset B - Acquired on P9 of 2008 --> INR10000
   A & B are linked to Group Asset C in 02-Tax depreciation area.
     When I view Group Asset depreciation, I noticed that the deprecition for 2008 computed as (1000015%)+(1000015%). Thus, although Asset B is still being depreciated at full rate of 15% instead of half of the rate.
    Besides, is that normal that I'm not able to see depreciation at Asset A and Asset B in tax depreciation area 02 when they are managed at Group. I can only view the deprecation at Group asset C?
    Appreciate help if anyone have similar experience. Thank you in advance.
rgds
WJ

Hi,
If you want to adhere Indian IT laws then follow the below mentioned steps:
1. Maintain a relationship of 1:1 of AS01 & AS21, means when you create a new normal asset it should be tagged with a new group asset.
2. Try to use SAP standard delivered dep. keys.
3. Change asset value date determination in SPRO.
4. Tagged group asset into the normal asset master.
5. Check tax dep.figures under group asset.
Regards
Anuj Agarwal

Similar Messages

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  • Tax depreciation calculation - India

    Hi,
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    Dear Nagesha,
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    Have a Nice Day,
    if you are ok with the above info, then close this ticket.
    Manu
    Edited by: manucs on Dec 29, 2011 10:12 AM

  • Income Tax Depreciation-India

    Hi,
      You all might be aware To Evaluate the Income Tax Depreciation in Asset Accounting we have got 2 options:-
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        We are using ECC 6.0 Version and I have copied COD- 1IN
        I just wanted to know whether SAP has withdrawn support for I.T-Depreciation-India if yes can anybody give me a reference note or country version release so that i can intimate the same to the client.
    Regards
    Sunil

    Dear Ramesh,
       Thnx a lot it has worked and my problem has been solved.
    Regards
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  • Change in start date of tax depreciation not for posting in mid of year

    Hi Experts,
    Tax depreciation area is not for posting. The fiscal year is from Jan to Dec. I want to calculate tax depreciation from May 2011 based on Net Book Value of tax depreciation as on 30.04.2011. But once I change the start date of tax depreciation in asset master to 01.05.2011, the system ignores the previous depreciation so I am not getting the NBV of tax depreciation of 30.04.2011.
    Is any setting is required to get this. I can not do changes in posting rules since this tax depreciation is not for posting any thing.
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    Need your assistance to know is it feasible to do this.
    Thanks and Regards,
    Harshad

    Hi Harshad
    The behaviour of the system is very much correct, it is designed to behave that way...
    One, you should not have changed the dep start date....
    two, NBV in SAP is always taken to be NBV @ the start of the year....
    The best wayout I can suggest here is, if you are on EhP4 and EA-FIN active
    a. Change the Dep Key in the asset... You can maintain Time Dependant Dep Terms in asset master i.e. Dep Key X from Jan-Apr and Dep Key Y from MAy onwards
    b. This will however, calculate dep based on NBV at the start of the year, but based on new useful life
    c. Considering your eg: The system is posting more depreciation i.e. 5333 instead of 5155.... So, calculate this amount outside the system and post a Manual Write up ABZU inorder to reduce the Dep and increase the NBV
    Even if you are on not on EhP4, you can follow the same approach as above.... i.e.
    a. Change the Dep Key in asset master.... This will throw up new dep figure, on the basis of New Useful life and NBV at the start of the year
    b. Post a write up from ABZU....
    No need to do Asset to asset transfer in my opinion
    Only diff between EhP4 and Non EhP4 is that the differential depreciation would be lesser if you are on EhP4... i.e. instead of 5333 now, system may throw up depreciation amount of 5666.. So, you may need to post write up of 5666-5155
    br, Ajay M

  • Change in start date of tax depreciation in mid of year

    Hi Experts,
    Tax depreciation area is not for posting. The fiscal year is from Jan to Dec. I want to calculate tax depreciation from May 2011 based on Net Book Value of tax depreciation as on 30.04.2011. But once I change the start date of tax depreciation in asset master to 01.05.2011, the system ignores the previous depreciation so I am not getting the NBV of tax depreciation of 30.04.2011.
    Is any setting is required to get this. I can not do changes in posting rules since this tax depreciation is not for posting any thing.
    The fiscal year 2010 is closed and NBV of tax depreciation as on 31.12.2010 of one asset is 80000, If I change the start date of tax depreciation from 1.1.2011 then system correcly take NBV of 31.12.2010 for further depreciation calculation. But if i change the start date of depreciation in between of year the system is calculating depreciation based on NBV of 31.12.2010 but ignores the tax depreciation from 1.1.2011 to 30.04.2011, which I previously run using AFAB.
    Need your assistance to know is it feasible to do this.
    Thanks and Regards,
    Harshad

    Hi Harshad
    The behaviour of the system is very much correct, it is designed to behave that way...
    One, you should not have changed the dep start date....
    two, NBV in SAP is always taken to be NBV @ the start of the year....
    The best wayout I can suggest here is, if you are on EhP4 and EA-FIN active
    a. Change the Dep Key in the asset... You can maintain Time Dependant Dep Terms in asset master i.e. Dep Key X from Jan-Apr and Dep Key Y from MAy onwards
    b. This will however, calculate dep based on NBV at the start of the year, but based on new useful life
    c. Considering your eg: The system is posting more depreciation i.e. 5333 instead of 5155.... So, calculate this amount outside the system and post a Manual Write up ABZU inorder to reduce the Dep and increase the NBV
    Even if you are on not on EhP4, you can follow the same approach as above.... i.e.
    a. Change the Dep Key in asset master.... This will throw up new dep figure, on the basis of New Useful life and NBV at the start of the year
    b. Post a write up from ABZU....
    No need to do Asset to asset transfer in my opinion
    Only diff between EhP4 and Non EhP4 is that the differential depreciation would be lesser if you are on EhP4... i.e. instead of 5333 now, system may throw up depreciation amount of 5666.. So, you may need to post write up of 5666-5155
    br, Ajay M

  • Config of Group assets - Tax Depreciation Calculation : India

    Dear Seniors,
    can you please explain the configuration of the Group assets and how exactly the tax depreciation calculation in India happens for the individual assets with scheme of entries.
    Thanks and Regards
    Sathish

    Hi,
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    I Hope it will give you some basic guidance.
    Regards,
    Krishna Kishore

  • Income tax depreciation in india

    Dear All,
    How do we adress the income tax depreciation in India.
    As we know the depreciation treatment for Income tax depreciation is a block concept...how do we adress that...
    Could any one explain elaborately if possible...short and precise inputs are also most welcome...
    Please help to resolve the issue
    Sapfrido

    Existing group asset concept for income tax depreciation functionality was withdrawn with Note 738919.
    Following limitations/restrictions are there in the existing process.  
    Limitations of Group Assets        
    Locking 
    Cap on the volume of transactions u2013 99,999
    Limitations of Report J1IQ
    Opening Balance Calculation
    Depreciation Calculation for Assets acquired and Put to use for less than 180 days
    Depreciation Calculation for different fiscal year variants
    Assets Acquired and Sold in the same year
    Asset Block Retirement by Scrapping
    Asset put to use date capture
    Report Formatting Issues
    The solution for IT Depreciation Calculation is being revamped and the new solution shall be available in EhP5.
    If you have further query about new solution better to contact SAP by raising the OSS message by using component -XX-CSC-IN-FI

  • Link-Group Asset Class, Depreciation Area & Depreciation Key

    Dear Experts,
    I am new to FI-AA Customization & have a basic query about Group Asset Concept.
    I am working on Ecc 6.0 & for Country India.
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    Dear,
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    Regards,
    Pankaj A Bhalerao.
    Edited by: pankaj_ab on Feb 3, 2010 8:26 AM

  • Group Assets IT - Depreciation

    Hi All,
    I am calculating Depreciation on Assets based on Income tax act of India.
    Based on this the assets purchased less than 180 days should 50% depreciation charged.
    this is running fine when I calculate the depreciation on Individual Assets.
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    Thanks
    Ravi

    Hi,
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    K4     02     Pro rata upto mid-period at period start date              1     15
    K4     02     Pro rata upto mid-period at period start date              2     14     1
    K4     02     Pro rata upto mid-period at period start date              3     15     2
    K4     02     Pro rata upto mid-period at period start date              4     15     3
    K4     02     Pro rata upto mid-period at period start date              5     15     4
    K4     02     Pro rata upto mid-period at period start date              6     15     5
    K4     02     Pro rata upto mid-period at period start date              7     15     6
    K4     02     Pro rata upto mid-period at period start date              8     15     7
    K4     02     Pro rata upto mid-period at period start date              9     15     8
    K4     02     Pro rata upto mid-period at period start date              10     15     9
    K4     02     Pro rata upto mid-period at period start date              11     15     10
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       740   0AT    007    04     06     05     05     X                                                04/06/05/05
       740   0BR    007    04     06     05     05     X                                                04/06/05/05
       740   0PL    002    11     11     11     11     X                                                11/11/11/11
       740   0PL    003    01     01     01     01     X                                                01/01/01/01
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    Ravi

  • Calculation of Tax Depreciation - India

    Hi,
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    Regards,
    JBC

    I am not sure if this work.. but give it a try.
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  • Issue on asset tax depreciation balances

    Dear Experts,
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    Not answered. Somebody throw some light on this. Your inputs are valuable.
    Regards
    Komal
    Edited by: Komal on Feb 2, 2009 7:14 AM
    Edited by: Komal on Feb 2, 2009 7:14 AM

  • Calculation of Depreciation for Group Asset

    Hi Experts,
    I am getting a problem while doing depreciation for group asset
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    Regards,
    Satya Vani.

    Dear,
    Reshma.
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    1 ) We need to create new different asset class for Group Class in OAOA. Then permit the depreciation area for only Group Asset in OAYM as it is in your current scenario India  is Depreciation Area 15 Just select your company code in OAYM and check the Grp Asset field for respective area 15. Then go to OAAX here we have to maintain the assets classes particularly for Group Assets. So check your Group Asset classes for Group Assets. Cerate different Group asset classes for your said requirement.
    In these depreciation areas, it is then possible to make an assignment to a group asset.  You make this assignment in the specifications for the depreciation area in the asset master record.  When you post an acquisition to this kind of asset, the system duplicates the line items from this depreciation area on the given group asset.
    2 ) According to me you have to create different depreciation keys for Group Asset classes. Assign the Depreciation keys to your newly created Group Asset Classes in OAYZ and make sure you are deactivating 01 area which is Book Depreciation area.
    3 ) As far as I know this is the only functionality available to handle Group Assets. How ever SAP does not have any standard Group Assets functionality. SAP does not supply asset classes to be used solely for group assets. It is we have to determine as per varying Business Process.
    I hope this will clear your doubt makes you to understand. Please revert back for further clarification. Welcome you.
    Regards,
    Pankaj A Bhalerao.
    Edited by: pankaj_ab on Feb 3, 2010 8:26 AM

  • What is Income Tax Depreciation - India and How it is dealt in SAP?

    Dear Experts,
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    Regards,
    Nimish Agarwal
    deleted
    Moderator: Upon next violation of SDN rules your user will be blocked

    Hi Nimish,
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    Re: Concept of Group Asset
    Re: Depreciation as per IT Act
    Regards,
    SAPFICO

  • System is not calcutiong tax depreciation in the asset master.

    Hi SAP Team,
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    Chinna

    Check screen layout rules for that asset class, the field might have been suppressed.
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