When books of accounts are maintained on receipt basis of accounting is there any necessary to pass depreciation entries?
Karunakar.Lingala
(Cost Accountant)
(83 Points)
Replied 07 September 2011
Yes it is necessary to pass Depreciation entries
Amit Gupta
(Loosening Myself)
(1508 Points)
Replied 07 September 2011
As per company law u cnt maintain ur books of accounts on cash basis and depreciation specified by compnany law are minimum.
But in case of other assessee even if u does not claim depreciation in books of accounts u need to charge depreciation for computing PGBP income as per IT laws
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