Method of depriciation

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Chandni (Querist)
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21 January 2014 hello sir...
my client is a private limited company and while checking the audited balance sheet it was found in notes to accounts , method of deprecation followed was WDV as per IT Act, i.e. 30% on motor vehicle (for hiring) but as per companies act rate (WDV) 40% on motor vehicle (for hiring). please suggest what to do as we can not charge deprecation lower then as mentioned in companies act.
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Guest

Guest (Expert)

21 January 2014 Show as per companies act 40% but while filing the Income Tax Return add back that depreciation amount and less the amount as per income tax act.

Chandni

Chandni (Querist)
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21 January 2014 as per companies act on slm method it was 16.21% and 40% (WDV) . but compnay book dep in books as per it act i.e. 30%
whether it was correct ??

Guest

Guest (Expert)

21 January 2014 No it is incorrect. It is the minimum rates given as per the companies act. Company should charged 40% depreciation as per the companies act 1956.

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