My client a Pvt Ltd. Co. has put a solar power project, on which under Income Tax Act Depreciation Allowed is 80%
Can a pvt ltd company charge accelarated depreciation @ 80% in books of account to avoid MAT liability?
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Accelarated depreciation
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Rates of depreciation provided in Sch.XIV of Companies Act 1956 are minimum rates of depreciation which should be provided before declaring any dividend. Co. can opt for higher depreciation. However, it must be in compliance of AS-6.
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