Fixed assets depreciation
This query is : Resolved
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.
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.
it would get debited direct from P/L without getting effected in fixed asset and depriciation.
Message likes :
1 times
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,
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,
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
- DELIVERY GOLD & SILVER AND OTHER ETF TRADING PROFIT AS BUSINESS INCOME
- GSTR-1A How to update Invoice
- Excess salary payment.
- 3cd- cash system of accounting is allowed?
- Provision for loans that are under Revenue Recovery
- APPLICABILITYOF GST ON STUDENT HOSTEL FEES
- Form 121-contradictory opinions
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Stamp Paper for partnership firm change new income tax 2025
- TDS on Purchase of Immovable Property by NRI from NRI
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
