Swan (Pvt.) Ltd. acquired machinery for ₹ 5,75,000 which included GST of ₹ 75,000 eligible for input tax credit. It bor-rowed ₹ 3,00,000 from a bank for purchase of the said machine. Interest on the bank loan up to the date of usage of machine was ascertained as ₹ 5,000. The machine was put to use from 15th September, 2019. Assume the rate of depreciation at 15%. The eligible amount of depreciation will be –
A. ₹ 90,000
B. ₹ 78,750
C. ₹ 86,250
D. ₹ 75,000
Answer:D
Swan (Pvt.) Ltd. acquired machinery for ₹ 5,75,000 which included GST of ₹ 75,000 eligible for input tax credit. It bor-rowed ₹ 3,00,000 from a bank for purchase of the said machine. Interest on the bank loan up to the date of usage of machine was ascertained as ₹ 5,000. The machine was put to use from 15th September, 2019. Assume the rate of depreciation at 15%. The eligible amount of depreciation will be –
A. ₹ 90,000 B. ₹ 78,750 C. ₹ 86,250 D. ₹ 75,000