Depreciation
This query is : Resolved
Praveen Nigam
(Querist)
06 December 2007
A company which follows schedule xiv rates of Companies Act for depreciation. But this company depreciates its assets upto 95% of the historical cost of the assets. There after it does not provide any depreciation in the books. whether company is correct in doing so or not?
06 December 2007
As per company law 95 per cent of cost of an asset to be depreciated over its life, the Income-Tax Act does not stipulate any condition.
AS 6 ICAI requires that the historic cost of the asset less its estimated realisable value to be depreciated over its useful life.
Schedule XIV of the Companies Act PROVIDES schedule of the depreciation rates to be charged by companies.
SO THE COMPANY'S PRACTICEIS IN TUNE WITH THE LAW.
R.V.RAO
AS 6 ICAI requires that the historic cost of the asset less its estimated realisable value to be depreciated over its useful life.
Schedule XIV of the Companies Act PROVIDES schedule of the depreciation rates to be charged by companies.
SO THE COMPANY'S PRACTICEIS IN TUNE WITH THE LAW.
R.V.RAO
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
- Gst credit note by supplier
- GST on reimbursement of expenses
- Query on effect of registration of property
- Missed uploading GST Invoice
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Visiting card purchase
- Number of years as per AS amortisation of Goodwill
- Whether output tax is taken credit by purchaser
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
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
