Depreciation

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Pandharinath (Querist)
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27 August 2015 As per company act can we calculate depreciationy on total cost of asset or calculate after residual value?

For WDV depreciation method

total cost of asset-100000
Residual value=5000
should we calculate depreciation on 100000 ya 95000?

please suggest me

Amol S Joglekar

Amol S Joglekar (Expert)
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27 August 2015 calculate the depreciation on 95,000 as per the new act 2013.

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Pandharinath

Pandharinath (Querist)
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27 August 2015 but sir our ca charged on 100000

Amol S Joglekar

Amol S Joglekar (Expert)
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27 August 2015 First and foremost, depreciation is to be charged by the Management of the Company and not by AUDITOR CA as AUDITOR. So please stop pointing finger at CA.

You charge the depreciation as per Companies Act 2013 and then LET your auditor CA report the same in his/her report. ok?

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Pandharinath

Pandharinath (Querist)
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27 August 2015 and what is in slm ? and normaly can we calculate depriciation on cost (include taxes)?

Amol S Joglekar

Amol S Joglekar (Expert)
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27 August 2015 In fact, the new act is aiming at SLM. They are trying to make us IFRS (International Financial Reporting Standards) compliant.

Since we are used to WDV, a stop gap arrangement is made for the time being to convert the so called SLM depreciation in terms of WDV rate.

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Pandharinath

Pandharinath (Querist)
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27 August 2015 please send your cell no i want to speak with you.

Amol S Joglekar

Amol S Joglekar (Expert)
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27 August 2015 9371235540. Please call after 6 pm, if you dont mind.

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