Depreciation as per companies act. 2013

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2017 Dear Experts,
on construction of factory we have incurred 2065790/- the factory was put to use from 11/3/2017 however as per schedule II depreciation rate is specified SLM 3.17%, WDV 9.50% & useful life is 30 years. pls clarify :- which method we have to opt to charge dep. weather 3.17% SLM or 9.50% WDV also let me know in the period of 2016-17 the factory was used only 21 days. will dep. be calculate only for 21 days if yes pls let me know the formula of that, and requested to all members to explain the same with an example if possible?

Regds
Anshul

Expert : Anonymous

Expert : Anonymous (Expert)

28 April 2017 You can adopt any method SLM or WDV but you have continuously follow the adopted method.. Yes you are required to calculated Dep. Of 21 days..

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2017 Dear Sir,
we want to opt SLM method so Generally we calculate dep. as per SLM method is as follow....
in my case construction cost is 2065790/- Less 5% residual value 2065790-103290 1962500/- Hence 1962500/30 (useful life) 65417 Per year, but in my case asset was used only 21 days in first year therefore dep. will be calculate for 21 days 65417/365*21 3764/- so in the first year dep. will be 3764

pls clarify.... is this correct calculation or not if not pls let me know the correct calculation as per SLM method which specified 3.17%

Thank you In Advance....

Expert : Anonymous

Expert : Anonymous (Expert)

29 April 2017 It is correct Calculation..

Querist : Anonymous

Querist : Anonymous (Querist)

30 April 2017 Dear sir,
if it is correct calculation... then what is use of 3.17% dep. specified in schedule II as per SLM Method....

pls clarify....