Maximum Depreciation
This query is : Resolved
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.
07 December 2007
Dear SFM,
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
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
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
- Reopen of assessment proceeding
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Experts need help
- Eway bill generation from place other than registeted
- EPF FULL & FINAL RULES IN 2026
- Management System (IMS)
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Condonation . E-Verification of last year return .
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
