Depreciation as per Companies Act,1956
This query is : Resolved
07 January 2010
Can a asset whose WDV at the beginning of the year is less than 5000 be depreciated at the rate of 100% ?
if yes,
plz give the legal base of the answer.
thanks in advance.
if yes,
plz give the legal base of the answer.
thanks in advance.
07 January 2010
If newly assets purchased and whose value is less than 5000 that assets is eligble for 100% deduction for the same you can refer SCHEDULE XIV - RATES OF DEPRECIATION
of the Companies Act, 1961 depreciation on assets, whose actual cost does not exceed Rs. 5,000 shall be provided depreciation @ 100%.
Assets who has WDV at the beginnig of the year is less than 5000 will not liable for 100% deduction even in Companies Act, 1956 and under Income-tax Act, 1961
of the Companies Act, 1961 depreciation on assets, whose actual cost does not exceed Rs. 5,000 shall be provided depreciation @ 100%.
Assets who has WDV at the beginnig of the year is less than 5000 will not liable for 100% deduction even in Companies Act, 1956 and under Income-tax Act, 1961
07 January 2010
"Can a asset whose WDV at the beginning of the year is less than 5000 be depreciated at the rate of 100% ?"
can a company do the same if they have incorporated this rule in their accounting policy ?
can a company do the same if they have incorporated this rule in their accounting policy ?
07 January 2010
The above rule is appliable to newly assets purchased not in WDV of assets.
WDV means after Depreciation value of assets. Even though assets WDV after depreciation goes below Rs.5,000 then in that case it is not allowed to 100% Depreciation. However you can Impair the assets subject to the AS-28 "Impairment of Assets"
Yes, Company can charge 100% Depreciation on assets (i.e. newly purchased assets which value's is less than Rs.5,000.00) without incorporating the rule.
WDV means after Depreciation value of assets. Even though assets WDV after depreciation goes below Rs.5,000 then in that case it is not allowed to 100% Depreciation. However you can Impair the assets subject to the AS-28 "Impairment of Assets"
Yes, Company can charge 100% Depreciation on assets (i.e. newly purchased assets which value's is less than Rs.5,000.00) without incorporating the rule.
04 February 2010
thanks
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
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Reopen of assessment proceeding
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Gift Received from nonblood relative
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Rental income gst and it purpose
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
