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BISHNU DEO SHARMA (SERVICE) (101 Points)

09 March 2009

CAN ANY BODY GUIDE ME, IT IS MANDATORY FOR ANY COMPANY IN HIS BALALNCE SHEET SHOW DEPRECIATION AS PER COMPANY ACT.

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5 Replies

(Guest)

In Balance Sheet of a Company Depreciation should be calculated as per Income tax Rates but seperate calculation also required for Depreciation for submission B/s in other Govt authorities like SEBI, Stock exchange, ROC etc

(Guest)

Yes...Its mandatory for any Company to claim Depreciation in its Books of Account as per IT Act, 1962( Refer Section 32)

Also, no Company can declare dividend or pay managerial remuneration without providing for Depreciation as per Section 350 of the Companies Act, 1956.

>>Vipul Garg

CA SUDIPTA SINHA (Commerce Coaching- Accounts Cost FM) (735 Points)
Replied 09 March 2009

in case of a company it is mandatory to charge depreciation as per Companies Act. as per Income Tax Act it has to prepare a seperate chart for depreciation. As the companies are governed by Companies Act it has to follow the provision of the said Act. in case of other entities (sole proprietorship business) depreciation can be charged as per IT Act.

R.PARTHIBAN (student) (31 Points)
Replied 01 October 2014

why prepare Companies Act Depreciation and income Tax act Depreciation

Bhavin Bhadanji (Accountant) (21 Points)
Replied 06 October 2014

Dear sir,

I have a query for accounting purpose related to service tax on transporation of good bear by us.

suppose a company is dealing with transpotation of good and issue a bill of RS 1000/-, which doesn't include service tax and they wrote service tax RS 30.9/- is to be payable by consignor.

Please Suggest me right entry for the same................

Thanking you