depreciation

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Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2010 dear experts,

Please tell me if depreciation on fixed assets is claimed at a lower rate. Is there any compulsion for a firm to charge depreciation on the prescribed rates?

Thanks and regards

CMA.Palani Arumugam

CMA.Palani Arumugam (Expert)
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12 April 2010 If it is a company, then u have to charge depreciation as per WDV method or Straight Line Method at the rate specified in the schedule XIV of Co.Act.

As per Income tax Act, there is seperate rate mention in the Act. However u have to follow compulsorily WDV method here.

For a firm, you have to charge dep. as per IT Act.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2010

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 April 2010 AGREE WITH EXPERT

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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12 April 2010 NOT compulsion for a firm to charge depreciation on the prescribed rate in Income tax,

you charge depreciation or not value of fixed assets reduce as per prescribed rate of income tax,

its better to claim Dep. as per it act.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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12 April 2010 agree with Mr. Sahu

CA Prashant Gupta

CA Prashant Gupta (Expert)
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12 April 2010 for a firm income tax rate is applicable. You can't charge lower depreciation. in calculation it is assumed that you charged full rate of depreciation and value of asset will be calculated according to rate specified in act.