Depn rate asper companies act 2013

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A.Dhilipkumar

A.Dhilipkumar (Querist)
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09 December 2014 sir I need depn rate as per new cact

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 December 2014 Schedule II of Companies Act 2013 provides the useful lifes of tangible assets as against the minimum rates of depreciation which were specified in Schedule XIV of the Companies Act, 1956.

Residual value should generaly be not more than 5% of the original cost of the asset for all companies (other than regulatory Authority constituted under an Act of Parliament or by Central Government). However, it can be higher in case of all other companies, if justification is disclosed in financial statements.

Useful life of assets have been prescribed under Part C of Schedule II (for other than Regulatory Authority). The usefulife
shal not be more than as prescribed in Part C . In case it is more than that prescribed in Part C of schedule I then justification for the same needs to be given in financial statement.