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Discussion > Income Tax > Others > SLM Method of Depreciation in case of electricity companies   Post New Topic

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Neha Babbar
Article
[ Scorecard : 45]
Posted On 20 January 2010 at 16:43 Report Abuse

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hi!!!!!

can anyone tell me wats the logic of charging dep on SLM in case of electricity companies specially???


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MOHIT MAHAJAN
LCS, CA(Final)
[ Scorecard : 926]
Posted On 20 January 2010 at 17:52

One reason told by our teacher is that electricity companies involves heavy investments and the comparative revenue generation is less in intial years of operation.  Hence SLM method helps them to claim higher depreciation as compared to WDV method.



AMIT KUMAR
Accountant
[ Scorecard : 33]
Posted On 20 January 2010 at 18:25

i agree with mohit ji



swajitha
ca..final
[ Scorecard : 65]
Posted On 20 January 2010 at 22:33

but the rates in slm are much lower compared to wdv...so we cant claim higher dep in slm method



sriram
student - FINAL
[ Scorecard : 201]
Posted On 21 January 2010 at 10:29

there's no logic in it while others are not entitiled to chg dep in SLM they ve got freedom to do tats it






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