Charging of depreciation
This query is : Resolved
13 April 2012
can company charge depreciation as per IT in balance sheet.? Please give me the reason as well.. You can send your replies on anandkanani4u@yahoo.com also.. Please guide me.. Actually my client is doing that.. And they argue that since they mention in notes they can charge depreciation as per IT In balance sheet.!
CA Vibhash Kumar Sah
(Expert)
14 April 2012
Any company register under Companies Act has to follow the rule & regulation of the Companies Act. Depreceation has to be charged as the rate prescribed under Sc.XIV. If the depreaciation has been charged as per IT act, a clear and separate disclosure with proper reason should be mention in the Notes to the Accounts. Auditors may also qualify his report.
CA Bhuvnesh mittal
(Expert)
15 April 2012
Any company can charge depreciation as per income tax act for the purpose of income tax only. But for the purpose of Companies Act it has to follow the dep. rates of Company act, 1956.
T.K. JAGANATHAN
(Expert)
16 April 2012
The Companies Registered in India have to follow the Depreciation as per the Companies Act only . The Company can adopt WDV method in order to be in line with the IT depreciation. The Company can charge IT deprecation rate if its more than that prescribed under the Companies Act. The Companies Act specifies the minimum Depreciation to the be charged
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