Depreciation rate more than permitted by Companies Act

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Abhishek (Querist)
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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.

vrnanda

vrnanda (Expert)
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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,

Abhishek

Abhishek (Querist)
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05 September 2009 Thanx vrnanda

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