To compute depreciation, Tax paid on purchase of assest is needed to deduct from the asset value.

It depends on the rules in the country. If tax paid at the time of purchase is a part of the book value of the asset, then it will be considered for depreciation calculations. If the company has obtained tax credit  (VAT credit or reimbursement) then it is not a part ofbook value. In such a case, it is not considered for depreciation calculations.

False:

Because in the calculation of Depriciation there is no preference for Tax.

There are two types of taxes paid on asset these are refundable and non refundable taxes. Refundable taxes are not allowed to be capitalized and made depreciation on it. These:are taxs like VAT and withholding. Non refundable taxes are capitalised and depreciation is made on it. These taxes are taxes like custome taxes or TOT. These rules are universal and applied in most countries.

sales tax does not deduct from the assets value

advance income tax need to deduct