Depreciation n dividend

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This query is : Resolved

raghavendra kamat (Querist)

09 March 2012 If d company has not declared dividend, then it need not charge depreciation in itz buks of a/cs..True or False..
i know its false..but is there any provision relating to depre n dividend as such???

CA Ghanshyam Joshi

CA Ghanshyam Joshi (Expert)

09 March 2012 Depreciation shall be provided either—
(a) to the extent specified in section 350; or
(b) in respect of each item of depreciable asset, for such an amount as is arrived at by
dividing ninety-five per cent of the original cost thereof to the company by the specified
period in respect of such asset; or
(c) on any other basis approved by the Central Government which has the effect of writing off
by way of depreciation ninety-five per cent of the original cost to the company of each
such depreciable asset on the expiry of the specified period; or
(d) as regards any other depreciable asset for which no rate of depreciation has been laid
down by this Act or any] rules made there under, on such basis as may be approved by
the Central Government by any general order published in the Official Gazette or by any
special order in any particular case :
(e) In the event of the depreciable asset being sold, discarded, demolished or destroyed the
written down value thereof at the end of the financial year in which the asset is sold,
discarded, demolished or destroyed, shall be written off in accordance with the proviso to
section 350.

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raghavendra kamat

raghavendra kamat (Querist)

04 April 2012 Thank you sir..!!!

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