Minimum wdv under slm method.
This query is : Resolved
16 November 2011
My Query is as follows:
Company is charging depreciation under SLM.Company has a practice that when the WDV is 5% or less than 5% of Cost of Acquision of the said asset then no further depreciation shall be provided on such WDV. So e.g. if original Cost of acquisition of an asset is Rs. 10 Lacs and its WDV reached Rs.50000 or less(i.e. 5% of 1000000},then no depreciation shall be charged on such asset and such asset shall be carried forward at such WDV.
Is the practice is as per law.
Company is charging depreciation under SLM.Company has a practice that when the WDV is 5% or less than 5% of Cost of Acquision of the said asset then no further depreciation shall be provided on such WDV. So e.g. if original Cost of acquisition of an asset is Rs. 10 Lacs and its WDV reached Rs.50000 or less(i.e. 5% of 1000000},then no depreciation shall be charged on such asset and such asset shall be carried forward at such WDV.
Is the practice is as per law.
17 November 2011
Yes, it is as per section 349 of the Companies Act.
Message likes :
1 times
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
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Eway bill for machinery reparing
- Under construction property in ITR
- Gift of mutual fund units to daughter
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Building tax payment deduction in rental Income
- Reporting of STCG on Property in ITR
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
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
