Sch 13 Depreciation for Low Value Assets

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RAMNATH.R (Querist)
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18 December 2007 Sch13 clearly demarcates that any asset less than Rs.5000 shall be written off from the books.If a MNC corporate doing business in india in the name of a subsidiary has got a corporate policy of writing off its assets that has got value less than $400, then can the indian co. expense off assets costing less than Rs.16000/-...will it be in violation to Sch13 requirement prescribed by CA,1956...

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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18 December 2007 Please note that sch 13 gives minimum depreciation. It is upto the company to formulate its own depreciation poilicy which ensures this minimum and disclose the same in the Balancesheet

CA. Vineet Grover

CA. Vineet Grover (Expert)
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19 December 2007 Hi Ramnath,

There is a huge difference between depreciation and writiing of assets. I feel that there should be sufficient reason to explain to write off assets above Rs.5000/-. It is recommended not to write off assets above Rs.5000/-

Rgds/

Vineet

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