Dear Colleagues, A company has been charging depreciation in the books of account exactly as per the provisions of Income Tax Act, 1961 for the past more than 10 years. In this regard, I would like to ask following questions:-
1. Whether charging depreciation as per the provisions of Income Tax Act, 1961 allowed and poses on complications as far as AS-6, Income Tax, Companies Act are concerned?
2. If company wishes to change the method of deprecation from that in Income Tax Act, 1961 to Companies Act, then is it regarded as change in method or just change in the rates?
3 If such change is done as mentioned above in point 2, then would it be required to recalculate the depreciaiton with retrospective effect and accordingly give effect to the depreciation schedule?
Kindly advise me on this.
Thanks in Anticipation,
CA.Puneet Oberoi
CAclubindia
