Depriciation

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2015 Can company can adopt different method of depriciation for diffrent block of assets i.e for computer, Furniture etc

CA Aman Gupta

CA Aman Gupta (Expert)
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22 June 2015 Your query is not clear. Under which law the company wants to change the method of depreciation; (a) companies act 2013 or (b) Income Tax Act.

(a) Schedule II of the Co's Act recognizes depreciation on the basis of useful life of the asset. Though the company may adopt a different useful life for a particular asset with proper disclosure but the method would be SLM.
Earlier under Co's Act 1956 it was permissible to adopt different method of depreciation (either SLM or WDV) for different type of asset as per Sch XIV

(b) Income Tax Act prescribes only WDV method for all block of assets. However an electricity company may opt SLM method for calculation of depreciation, but such adopted method will be applicable for each block of asset.

Rupesh Jain

Rupesh Jain (Expert)
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22 June 2015 you have to follow the law , you can adopt the method as per Company act or as income tax act,

if you are company then you have to follow the company act no way.
other wise follow the income tax act rate.