Depreciation on mobile

Originally posted by : Kunal Mishra
	Can be depreciated 100% only when cost of mobile is less than Rs.5000, otherwise it has to be capitalised.

Thanks for your reply...but what if company has written internal policy for the same & statutory auditors are adding note for the same in financial statement?

The internal policy of the company is to write-off the cost of mobile phone, but internal policy should not Violate the Statutory rules. so company must change their policy.

As per Comapny Act SLM - 4.75% WDV-13.91/-   As per Income Tax Act 15% on P & M

Companies Act 

As per schedule XIV Notwithstanding anything mentioned in this Schedule, depreciation on assets, whose actual cost does not exceed Rs. 5,000 shall be provided depreciation @ 100%.

As per income tax act

You have to add asset in the relevant block charge depreciation as per income tax act 1961 i.e 15%

As per the Companies Act 1956 the rate of depreciation is 4.75%  on office equipment    which is mandotory as minimum rate of depreiation and  you can depreciate  more than minimum depreciation rate as per the company policy under the Companies Act only. But as per the IT Act  you have to  depreciate 15% on  WDV.

Dear All

Mr. Kunal is write, bcoz as per company act 1956 of  schdule XIV under section 205 and 350, in this schedule, deprection on assets, whose actual cost does not exceed of Rs. 5000/- shall be provided at the rate of 100%

Shiv