Depreciation as per schedule-ii

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2015 Dear Sir,

I have a query regarding the new method of Calulation of Depreciation based on useful life. My query is-

If we have a Business having three Busines Process. And we purchased a Machine only for Process 1 on 1/4/2005 and remaining processes are outsourced.
But later on, on 1-04-2010, we also purchased Machines for 2nd and 3rd Process and Combined all the three Machines as a Single Plant.
Now How the Rate of Depreciation Will be calculated????
Whether Separately on each machine or on the combined plant as a whole??
IF on the combined Plant as a whole, then How??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 April 2015 Depreciation has to be calculated machine wise.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 April 2015 Remaining useful life should be determined machinery wise and may be depreciated accordingly, though 'component accounting' becomes mandatory from 1-4-2015.

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