Capitalisation of Fixed Assets

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CA Shraddha Bankar (Querist)
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15 July 2010 Is there any provision in Co. Act that if value of fixed assets (suppose P&M) purchased during the year exceeds 10% of WDV then it is to be capitalised ? Or does AS-10 contains any clause regarding it ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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15 July 2010 Never heard of such rule. No such rule.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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15 July 2010 There is a proviso to note no.8 of schedule XIV of the Companies Act,1956 which reads as follows.
'provided that where aggregate actual cost of individual items of plant and machinery costing Rs. 5,000/- or less constitutes more than 10 % of the total actual cost of plant and machinery, rates of depreciation applicable to such items shall be the rates specified in item 11 of this schedule'.

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Rasesh

Rasesh (Expert)
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15 July 2010 Agree with Warrier Sir.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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15 July 2010 Correction of earlier statement

Nothing apart from that is there.

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