Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

What is the depreciation percentage for computers?

debopriyo sanyal (Founder Director & CEO) (30 Points)

28 December 2021

Hi,

Could some one please tell me what is the depreciation percentage for computers as per the latest company law?

Regards

Debopriyo

Reply
Follow
Share

9 Replies

Raj Kashyap (32 Points)
Replied 28 December 2021

40% Depreciation is charged on Computers and Computer software.

(Asset Class :-Plant & Machinery.)

debopriyo sanyal (Founder Director & CEO) (30 Points)
Replied 28 December 2021

In some sites it is mentioned as ~64%. Please clarify which depreciation % is accurate?

CA Aakarsh Jain (CA) (10234 Points)
Replied 28 December 2021

40% is correct

Tanuj Chandra Saxenaa (Company Secretary) (7070 Points)
Replied 28 December 2021

40% on Computers

debopriyo sanyal (Founder Director & CEO) (30 Points)
Replied 28 December 2021

So on the financial statement of the company the depreciation for computers should be 40%? On some private websites it is mentioned as 63.18%.Are you sure that 40% depreciation is correct?

CA Aakarsh Jain (CA) (10234 Points)
Replied 29 December 2021

For companies calculation of depreciation is different, and it is calculated on the basis of its useful life. so 40% is not applicable. There is a formula for that.

1 Like

debopriyo sanyal (Founder Director & CEO) (30 Points)
Replied 29 December 2021

Whether slm or wdv there must be a % of depreciation which is widely accepted as the standard for depreciating computers based on the companies act of 2013 by the ca community.So what is that percentage of depreciation?My accountant is pegging it as 63.18%.

AVLN Diwakar (Asst.Manager-Accounts) (24 Points)
Replied 29 December 2021

I think and hope as per companies Act 2013 useful life of computers is 3 years (end user device), Based on this calculation under SLM it is 31.67% and under WDV it is 63.16%.