Depreciation rates
This query is : Resolved
HARSHIT JAIN
(Querist)
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?
CA Suraj Lakhotia
(Expert)
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.....
CA Suraj Lakhotia
(Expert)
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
Message likes :
1 times
HARSHIT JAIN
(Querist)
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
CA Suraj Lakhotia
(Expert)
14 February 2013
Rate which would write off 95% of the cost of asset over its useful life.
CA Prashant Gupta
(Expert)
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
Message likes :
1 times
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- 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?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
CAclubindia
