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Depreciation under new schedule ii

This query is : Resolved 

29 May 2015 Hello Sir/Mam
I need a clarification on Schedule II depreciation rates.
For a company which was formed only in 2014,can I divide the cost of the asset by the useful life prescribed under the new schedule for arriving at the depreciation?

Or am i supposed to use the formula ((1-(residual value/WDV)^(1/remaining useful life))*100%

29 May 2015 u can divide the cost of asset by the useful life of asset as per sch2

29 May 2015 Thank you sir


29 May 2015 you are welcome sanjana.........

29 May 2015 I need clarification on the residual value also sir...r we reqd to maintain a residual value compulsorily at 5%

29 May 2015 New act prescribed the residual value to be 5% of cost of asset, in older schedule there is no such prescription as but rates given by schedule are worked out by considering the 5% residual value.

additionally refer guidance note issued by icai on sch II dep






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