Manoj Kumar Thirumalasetty (CA Final Student) (39 Points)
23 March 2016Fixed Assets, for example office Equipment we should depreciate it for 5 Years as per Companies Act.If we want to Depreciate as a % basis, What is the rate Is it 20% or
20%-5%(Residual Value)=19% Which is Correct? Thanks in Advance
SANGAMESWARAN.N
(Senior accountant)
(116 Points)
Replied 23 March 2016
Dear sir,
As per companies act 2013, depreciation rate for office equipment is 19% on (SLM) method.
so 19% is correct. you can use this rate%
actually it is 20% per year, but (it is reduced by residual earning value at 5% on 20%)
Regards.......
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