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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Gst registered proprietorship firm
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Non filing of I T Returns
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on Fixed Assets purchased
- SALARY CAN BE CAPITALIZE
- TDS on purchase of under construction property from a reseller
- GST on Renting godown to KFCSC for Storage of Raagi
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
