depreciation furniture & fixtures

This query is : Resolved 

(Querist) 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.

R.VENKATESAN (Querist) 05 December 2009

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

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