07 December 2007
What is the Maximum available depreciation on any asset as per Companies Act 1956, whether one use SLM or WDV method of Depreciation for Single, Double or Triple Shift of Working. Please explain in context to Companies Act, 1956.
There is not stringent rules as to adoption of method of depriciation Under companies Act 1956 unlike under income tax act where only WDV method can be followed.
Under Indian companies act 1956, a company can follow any menthod of depriciation whether SLM or WDV. The rated given in schedule XIV are bare minimum. The company can provide more than that subject to technical reasons and should be shown notes to accounts. Again if a company changes its mehtod of depriciation within any FY oy sbsequent FY it has to disclose it with reasons in notes of accouts of the financial statments
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