Fixed assets depreciation

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poonam Jaywant Kamble (Querist)
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31 May 2011 fixed assets write off upto 100% (Rs.5000/-)then it will be shown in gross block or not? what is accounting standard for it.

U S Sharma

U S Sharma (Expert)
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31 May 2011 when its 100% then it should not get added to fixed assets schedule.

it would get debited direct from P/L without getting effected in fixed asset and depriciation.

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Rakesh Jain

Rakesh Jain (Expert)
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02 June 2011 Dear Poonam

I think you are confused between provisions of co Act and provision of Income tax Act.
First of all gross block is for the Provision of Income Tax Act & for Co. Act every assets is an separate assets. There is no gross block in co Act.
For the purpose of Co. Act every assets should be booked in the a/c and after that it should be depreciated @ 100% if it is not more than Rs. 5000/-. And that assets should be shown in the books on a nominal value say Rs. 1.
For the purpose of dep there is AS 6. But for the purpose of dep rate you have to refer the rate specified in the Co. Act.
For the purpose of Income Tax assesse has to maintain a separate records of gross block of assets. And the dep. rate shall be apply on that assets as rate specified in the Income Tax Act.

With Regards,

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