Depreciation rates
This query is : Resolved
14 February 2013
Sir,
can rates higher than that mentioned in Sec 350 of the Companies Act be provided on assets. what if the management want to provide less rates?
can rates higher than that mentioned in Sec 350 of the Companies Act be provided on assets. what if the management want to provide less rates?
14 February 2013
Relevant provsions of Section 205 is reproduced below -
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.....
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.....
14 February 2013
The rates mentioned in schedule are only indicative and the company can charge higher rates of depreciation.
However you cannot charge depreciation at rates lesser than what is prescribed
However you cannot charge depreciation at rates lesser than what is prescribed
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14 February 2013
Sir,
could u pls elaborate the language of point (b) as it is vry complicated
could u pls elaborate the language of point (b) as it is vry complicated
14 February 2013
Rate which would write off 95% of the cost of asset over its useful life.
14 February 2013
yes, higher rate then sechule XIV can be charged.
in this you will show that useful life is less
in this you will show that useful life is less
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