Depreciation

1583 views 14 replies

 

Dear All,

Can any company claim higher rate of depreciation as per Companies Act 1956????

Replies (14)

Yes you can claim higher amount of depreciation .

However, there must be some basis on why you are charging excess depreciation.

Hi
Depreciation rates as per companies Act are only indicative and you cant charge depreciation lesser then the rates specified in the schedule but there is no restriction on charging depreciation at higher rates.

So if useful life of the Assets is lesser then what specified in the schedule then depreciation should be charged at higher rates.

the answer is no you cannot claim higher rate of depreciation as per comp act....

 

agree with Mr. Rajesh

You cannot claim depreciation higher than mentioned in Schedule XIV of the Companies Act.

 

Thank you members for your replies...

 

Kind att: Rajesh ji & Charu Ma'm,

Will you please elaborate your opinions as i was holding the same opinion as others.

Dear Ketan,

Now, what other grounds you have to charge excess depreciation - war/ act of God.

Regards

RAJESH CHOUDHARY

Yes, a company can claim higher rate of depreciation. The rates given in sch.XIV are minimum rates.

 

I agree with praveen and sanket.

Yes. You can claim higher rate of Depreciation provided that there is some basis of charging higher depreciation which is approved by the Managment. You can charge depreciation at a rate which is less than the rate of depreciation as mentioned in the Schedule.

Any change in rate of depreciation should be brought to the Notice of your Statutory Auditor.

yes you can claim higher rate of depreciation provided there is some basis for it.

 

Hi Friends, can you explain about Accelarated Depreciation

HIGHER RATE OF DEPRICAIATION AS COMPARED TO SCH XIV CAN BE CLAIMED 
 
provided the following points should be considered :
 
1 sch xiv provides minimum rate of depriciation and not maximum rate
2 if mangement uses any other rate than as prescribed under sch XIV then it should have reasons to belief that using such higher rate is resulting into better presentation of Fiinancial Statements
3 such special rates should be disclosed in the notes for the readers of the statements
4 such facts should be disclosed to the statutory auditor at the time of audit of the accounts of the company
 

Thanks a lot Jay

The rates mentioned in scheduled XIV is the minimum rates.

Thank you members for your answers and opinions..

My query is solved...

Thank you...

 

--

Ketan Waghela

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
06 July 2026
C.A./CA Inter OR pursuing C.A./GST/Accounts/Audit/IT - Head

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details