Dep rates

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Manoj Parashar (Querist)
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07 December 2015 IS THERE ANY OTHER RATES ARE THERE FOR DEP UNDER PARTNERSHIP ACT.OR INCOME TAX RATE SHOULD BE FOLLOWED BUT I JOINED A FIRM THERE IS NOT IT RATES ARE USED

AJAY SINGH

AJAY SINGH (Expert)
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07 December 2015 Dep. should be charged as per Income Tax Act by other than company. No Depriciation Rates are Prescribed Under Partnership Act so A Partnership Firm Should used Depriciation as per Income Tax ACT.

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Manoj Parashar

Manoj Parashar (Querist)
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07 December 2015 i have joined a partnership firm which is manufacturer of socks and the ca of firm has applied dep on straight line basis is it possible.

CA CS Jainam Shah

CA CS Jainam Shah (Expert)
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07 December 2015 No rates of depreciation has been prescribed under the partnership act, 1932.

So, you can compute depreciation as per your own. But Under IT Act, 1961 there is only WDV method of depreciation. You cannot compute depreciation on SLM basis under IT Act.

So It is advisable to compute the depreciation as per IT Act to match WDV of the assets as per books and as per IT Act.

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Manoj Parashar

Manoj Parashar (Querist)
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07 December 2015 thax Jainam ji. but our firm is following slm method for dep and itax chart seprately for claiming less dep so that profit will increase.now is there computation of dta/dtl for such difference arisen.? it is for partnership firm.

CA CS Jainam Shah

CA CS Jainam Shah (Expert)
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07 December 2015 No. DTA and DTL provision will not be arise.

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Kumar

Kumar (Expert)
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12 December 2015 Dta dtl may arise. Manoj, can you explain your last post.

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