depreciation furniture & fixtures

This query is : Resolved 

04 December 2009

we have procured 610 chairs & the value of # 1chair is Rs2600/-. Total value is Rs 12 lakh. Whehter we have to charge 100% depreciation on the furnitures (or) depreciation should be charged on pro rata basis (ie) if the asets are getting capitalised on Nov 01, 2009 for that period. The companies act &IT act allows for 100% depreciation.
my query is whther depn is to be charged 100% on Nov 30, 2009 (or)depn on prorata basis.
reply at the earliest is requested.

Murtaza Bhagat (Expert)
05 December 2009

You have to Depriciate F&F with rate of @ 10% full yr but your case as per IT allowes only 5% bcs its use less than 180 days in a year.

CA. Rishabh Mittal (Expert)
05 December 2009

For the purposes of companies act, depreciation should be pro rated.

05 December 2009

schedule xiv prescribes that assets less than Rs 5,000/- shall be provided 100% depreciation. Please explain

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