Depreciation as per companies act

This query is : Open

Priyanka.S (Querist)
Follow

01 September 2017 Is it necessary to calculate depreciation rate as per Companies Act every year after Financial year 2014-15?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

01 September 2017 Yes. If there is a difference in useful life as per schedule II with respect to the depreciation rate so arrived, then the company has to submit a technical report substantiating the useful life taken by it followed by a disclosure mentioning a different useful life against that prescribed in the said schedule.

Dibin Divyakumar

Dibin Divyakumar (Expert)
Follow

01 September 2017 Depreciation rate will be based on the balance useful life of the asset, it will not change every year, item wise rate will vary.
But for each item the rate will not vary everyyear.

Priyanka.S

Priyanka.S (Querist)
Follow

01 September 2017 Should we recalculate depreciation rate for AY 2016-17 or should we continue the same rates calculated for the AY 2015-16?

Dibin Divyakumar

Dibin Divyakumar (Expert)
Follow

02 September 2017 if there is no change in balance useful asset ascertained in AY 15-16, then you need not recalculate rates

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now