CAF-2 · Chapter 8 · Question 4 of 15
XYZ Ltd purchased a luxury vehicle (a passenger transport vehicle not plying for hire) for its CEO for Rs. 10,000,000. What cost will be considered for calculating the depreciation deduction?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) Rs. 7,500,000
Explanation
The cost of a depreciable asset being a passenger transport vehicle not plying for hire is restricted and shall not exceed Rs. 7.5 million for the purposes of calculating depreciation.
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