Depriciation

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SAMIR DESAI (Querist)

24 February 2012 Dear Sir,

i have P. Ltd company than which depriciation method is good for p. ltd copany how calculate depriciation as per income tax & as per company act & how pass entry in tally

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

24 February 2012 Company can follow any method of Straight line method or Written down value method, but should follow consistency, minimum rates as per prescribed by the Companies act

Under Income tax only need to follow written down value method as per maximum rates prescribed by the Income tax

only depreciation under companies act need t be booked in the books of accounts. Income tax depreciation you need to calculate and apply for tax calculation purpose

SAMIR DESAI

SAMIR DESAI (Querist)

24 February 2012 thx sir,

i want to one example if i purchase computers as on 23/02/2012 of Rs. 342000 how i calculate as per incometax & company act & how pass entry in tally

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

24 February 2012 Under Income tax apply the Depreciation rate on asset value

suppose rate us 16.21%

Rs.342000x16.21%x 1 Month & 7 days/12

Entry Dr: Depreciation a/c
Cr: Provision for Depreciation a/c

Under Income tax apply depreciation rate on asset value. and calculate depreciation. since the asset is used below 180days during the year. so only 50 % of depreciation can be claimed

no entry required under Income tax

SAMIR DESAI

SAMIR DESAI (Querist)

24 February 2012 thak u very much sir for guide line.

in whitch head put provision for depriciation,derpriciation put in direct exp. & this entry any reverse entry made in next year

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

24 February 2012 Provision for depreciation need to be created under Fixed asset head only.

Depreciation under Indirect expenses

no reversal entry made, in case while deletion or sale of assets, provision for depreciation need to be adjusted with asset cost

SAMIR DESAI

SAMIR DESAI (Querist)

24 February 2012 thk u sir,

Dear Sir,

in this year my company profit is 40 lakh & i want to give 2 director & 3 marketing employee each person 50,000/- insentive or bonas than how pass entry in tally in which head & in this amount Tds deducted or while form -16 made that time deducted this income include in form-16

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