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Depreciation on Assets

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Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2011 Please clarify and give guidence in respect of the following explanation given in the companies Act for Depreciation of Plant & Machinery

can we claim 100% depreciation for the cucles having WDV less than 5000/- (i.e) 3400/-
Provided that where the aggregate actual cost of individual items of plant & machinery costing Rs.5000 or less constitutes more than 10 per cent of the total actual cost of plant & machinery, rates of depreciation applicable to such items shall be the rates as specified in Item II of the Schedule.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 January 2011 For the purpose of Companies Act,1956, WDV cannot be equated with actual cost. Here the WDV being Rs.3,400/- the company cannot seek 100% depreciation vide note no. 8 of schedule XIV.

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