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Depreciation

690 views 2 replies

Dear Members,

Require the clarification regarding chargeability of Depreciation as per the companies act.

At one of our client place, the company is following SLM and charging depreciation on Motor vehicle & Motor Bikes owned by them @ 20% p.a. As per the companies act rate is 9.5%. Is chargeing at higher rate a correct treatment??

Thanks in advance

Replies (2)

well abhijeet, the rates of depn provided by companies act are minimum rate of depn that is to be charged. The company are at liberty to charge rate higher than the rate prescribed . 

Thank You Siryes


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