Depreciation as per Companies Act,1956
This query is : Resolved
05 January 2010
As per NOTES to SCHEDULE XIV :
"Provided that where the aggregate actual cost of individual items of plant and machinery costing Rs. 5,000 less constitutes more than 10 per cent of the total actual cost of plant and machinery, rates of depreciation applicable to such items shall be the rates as specified in Item II of the schedule."
Example :
there is 1 heater and 1 machinery under head Plant & Machinery :
A-29000
B-15500
addition in A-4000
as it is less than 5000 and also less than 10% of 29000(10% of A),it
will be depreciated @ 100 % ?
OR
as it is less than 5000 and not less than 10% of 44500(29000+15500),it will be depreciated at normal rates ?
"Provided that where the aggregate actual cost of individual items of plant and machinery costing Rs. 5,000 less constitutes more than 10 per cent of the total actual cost of plant and machinery, rates of depreciation applicable to such items shall be the rates as specified in Item II of the schedule."
Example :
there is 1 heater and 1 machinery under head Plant & Machinery :
A-29000
B-15500
addition in A-4000
as it is less than 5000 and also less than 10% of 29000(10% of A),it
will be depreciated @ 100 % ?
OR
as it is less than 5000 and not less than 10% of 44500(29000+15500),it will be depreciated at normal rates ?
07 January 2010
1) Total cost of machinery -- Rs. 44,500/-
2) 10 % thereof -- Rs. 4,450/-
3) Addition -- Rs. 4,000/-
4) Permitted limit -- Rs. 5,000/-
As amount in(3) is less than (2) and (4) addition can be depreciated @ 100 %.
2) 10 % thereof -- Rs. 4,450/-
3) Addition -- Rs. 4,000/-
4) Permitted limit -- Rs. 5,000/-
As amount in(3) is less than (2) and (4) addition can be depreciated @ 100 %.
07 January 2010
it means if the comapny has purchased 5 room heaters,
all the 5 room heaters can be depreciated at the rate of 100%.
in short :
each room heater will be regarded as individual plant & machinery so each heater is below 5000,hence depreciated at the rate of 100%.
all the 5 room heaters can be depreciated at the rate of 100%.
in short :
each room heater will be regarded as individual plant & machinery so each heater is below 5000,hence depreciated at the rate of 100%.
04 February 2010
thanks
04 February 2010
thanks sir
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
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Treatment of Pension ?annuity returns on PMVY
- TAN for Partnership
- Loan by Partnership Firm
- TDS related Query_Liquidated Damages
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- Specified Profession
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
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
