Depreciation Rate
This query is : Resolved
01 January 2010
Hello
How Company Decide to Charge Dep. method i.e. straight line or W.D.V. & reason for selection method.? which is best method?
How Company Decide to Charge Dep. method i.e. straight line or W.D.V. & reason for selection method.? which is best method?
01 January 2010
Depreciation method is an accounting policy of the company which is consistently applied every year. The Companies Act allows 2 methods, which ever method is applied it has to be disclosed in the Schedule of Accounting Policies attached to the Annual Accounts any change in method has to be reported seperately. The Income Tax Act follows the written down value method and the rates and grouping are different from those in the Companies Act 1956.
01 January 2010
Companies Act follows SLM method of depreciation and the Tax laws follows WDV method.
In Wdv method the depreciation for the initial year is high and lower in the later year....
In SLM it is constant over the period
If the company adopt SLM, then, provision should be taken for Defered tax.
In Wdv method the depreciation for the initial year is high and lower in the later year....
In SLM it is constant over the period
If the company adopt SLM, then, provision should be taken for Defered tax.
01 January 2010
agree with expert
08 January 2010
agreed
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 194-T applicability
- Applicability of GST on Salary Reimbursement Component
- Tds on commission charges
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Need Professional Opinion AY 2012-13 Old Demand
- Withdrawal in cash from partners capital account by partner
- FAST-DS Scheme - Foreign Assets
- TDS on TRUST
- Consolidated financials
- Regarding Applicability of Tax Audit u/s 44AB
- CHECK RELATED
- Dep. as per companies act
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- 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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
Quick Links
ARTICLESHIP
07 September 2026
Article/ Paid Assistant
Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
View Details
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared
Getmyca Consultant Pvt Ltd
New Delhi
CA Inter
View Details
ARTICLESHIP
18 September 2026
Industrial Trainee
Twenty Point Nine Five Ventures Private Limited
Noida
CA Inter
View Details
CCI
Pro
CAclubindia
