Depreciation under SLM method
This query is : Resolved
Meghana Maggi
(Querist)
03 December 2024
If a company purchases a battery and an inverter is it considered a fixed asset?
If yes then what is its useful life as per Companies act 2013?
And both battery and inverter liable to depreciation?
If yes then what is its useful life as per Companies act 2013?
And both battery and inverter liable to depreciation?
Dhirajlal Rambhia
(Expert)
03 December 2024
Yes, both the battery and the inverter are considered fixed assets under the Companies Act 2013. This is because they are long-term investments used in the operations of the business.
As for their useful life and depreciation:
Inverter: The useful life of an inverter is typically 10 years.
Battery: The useful life of a battery is generally 3 to 5 years.
Both the battery and the inverter are subject to depreciation. The depreciation rates as per the Companies Act 2013 are:
Inverter: 18.10% (Written Down Value method) or 6.33% (Straight Line Method)
Battery: 18.10% (Written Down Value method) or 6.33% (Straight Line Method)
As for their useful life and depreciation:
Inverter: The useful life of an inverter is typically 10 years.
Battery: The useful life of a battery is generally 3 to 5 years.
Both the battery and the inverter are subject to depreciation. The depreciation rates as per the Companies Act 2013 are:
Inverter: 18.10% (Written Down Value method) or 6.33% (Straight Line Method)
Battery: 18.10% (Written Down Value method) or 6.33% (Straight Line Method)
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