Depreciation rate more than permitted by Companies Act
This query is : Resolved
04 September 2009
Please let me know, under what conditions we can provide the Depreciation Rate more than permitted by Companies Act & what are the pre-requisites for that.
04 September 2009
Hi abhishek,
the rates for depreciation mentioned in the Compancies Act, are only the minimum rates. You can always go for a higher rate of depreciation depending on the business/usage of the Asset.
for example: rate of depreiciation for computers is 16.21, but where as the companies in software indurstry normally depreciate the asset over a period of 3 years.
hence you can always charge depreciation more than the rates specified in the Companies Act.
Regards,
the rates for depreciation mentioned in the Compancies Act, are only the minimum rates. You can always go for a higher rate of depreciation depending on the business/usage of the Asset.
for example: rate of depreiciation for computers is 16.21, but where as the companies in software indurstry normally depreciate the asset over a period of 3 years.
hence you can always charge depreciation more than the rates specified in the Companies Act.
Regards,
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