Depreciation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 May 2013
Pls tell me that what is the difference between W.D.V and S.L.M method of depreciation and what will be preferred for dedution ?
Dintakurthi Tirumala
(Expert)
21 May 2013
WDV meas Written down value on this method depreciation shall be charged on the written down value i.e book value as on the first day of the financial year starting. book value means original value of the asset - depreciation. And SLM Means Stright line Method on this method depreciation shall be charged on the original value of the asset every year at the fixed amount of depreciation.
Under WDV method asset value never be Zero because of depreciation will be charging on book value of every year. Under SLM method after some years asset value will be Zero.
Under WDV method depreciation amount shall be decrease year to year and Under SLM method depreciation amount shall be Fixed.
WDV method is acceptable and suggested as per income tax also WDV method only accepted.
OM SAI SRI SAI JAI JAI SAI
Under WDV method asset value never be Zero because of depreciation will be charging on book value of every year. Under SLM method after some years asset value will be Zero.
Under WDV method depreciation amount shall be decrease year to year and Under SLM method depreciation amount shall be Fixed.
WDV method is acceptable and suggested as per income tax also WDV method only accepted.
OM SAI SRI SAI JAI JAI SAI
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