archana pitti (accountant and auditor) (111 Points)
30 May 2015As per one of my client's (company) accounting policies they follow depreciation as per the rates prescribed under income tax act and rules thereof... So now my question is.. It being a Company is it require torevise its depreciation in books as per the rules of The Comopanies Act,2013.
Archana Pitti
(archanapitti775 @ gmail.com)
CA Amit Joshi
(Chartered Accountant)
(288 Points)
Replied 30 May 2015
Depreciation should be calculated as per companies act only, while preparing final a/c. Schedule 2 of Companies Act, 2013 prescribes minimum rates of depreciation. Hence, using the rates of depreciation below such prescribed rates do not represent true & fair view. However, rates as per income tax act may be used in final a/c too provided they are higher than the rates specified in Schedule 2.
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