Depreciation
This query is : Resolved
06 December 2007
in schedule xiv no where it is mentioned that company has to depreciate its assets upto 95%. then how a company can depreciate its assets upto 95% following schedule xiv rates?
06 December 2007
SCH XIV REFERS TO SEC 205 AND SEC. 350.
IT IS SECTION 205 ,SUB SEC 2, CLAUSE (b) WHICH TALKS ABOUT ARRIVING AT DEPRECIATION BY DIVIDING 95% OF ORIGINAL COST OF AN ASSET BY THE SPECIFIC PERIOD
( MEANS NO. OF YEARS AT THE END OF WHICH ATLEAST 95% OF ORIGINAL COST OF THE ASSET WILL HAVE BEEN PROVIDED BY WAY OF DEP.AS PER CLAUSE (a)SUB SEC. 5 of sec 205) IN RESPECT OF SUCH AN ASSET .
IT IS SECTION 350 WHICH REFERS TO SCH XIV.
so for the purpose of dividend payment and sec 350 --ascertain net profit to calculate managerial remuneration - the relevance of depreciation is determined.
SCH.XIV RATES OF DEP. ARE MINIMUM STATED. NO BAR IF A COMPANY WISHES TO CHARGE MORE DEP.
R.V.RAO
SCH XIV REFERS TO SEC 205 AND SEC. 350.
IT IS SECTION 205 ,SUB SEC 2, CLAUSE (b) WHICH TALKS ABOUT ARRIVING AT DEPRECIATION BY DIVIDING 95% OF ORIGINAL COST OF AN ASSET BY THE SPECIFIC PERIOD
( MEANS NO. OF YEARS AT THE END OF WHICH ATLEAST 95% OF ORIGINAL COST OF THE ASSET WILL HAVE BEEN PROVIDED BY WAY OF DEP.AS PER CLAUSE (a)SUB SEC. 5 of sec 205) IN RESPECT OF SUCH AN ASSET .
IT IS SECTION 350 WHICH REFERS TO SCH XIV.
so for the purpose of dividend payment and sec 350 --ascertain net profit to calculate managerial remuneration - the relevance of depreciation is determined.
SCH.XIV RATES OF DEP. ARE MINIMUM STATED. NO BAR IF A COMPANY WISHES TO CHARGE MORE DEP.
R.V.RAO
07 December 2007
thanx
thanx
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