Depreciation
Shubhangi Mathur (student) (127 Points)
08 September 2015
what is rate of deprication on car
Shubhangi Mathur (student) (127 Points)
08 September 2015
AKSHIT MALHOTRA
(C.A Final Student)
(1337 Points)
Replied 08 September 2015
under which act ? companies Act or Income Tax.Be specific
Miss Rinkal
(Student)
(1304 Points)
Replied 09 September 2015
Check whether business is of running on hire basis or not.
Under Income Tax Act
NON HIRE BASIS:
If used for >=180 days, 15%
If used for < 180 days, 7.5%
HIRE BASIS:
If used for >=180 days, 30%
If used for < 180 days, 15%
Under Companies Act,
Also check which method is to be followed, SLM or WDV
NON HIRE BASIS:
SLM - 11.88%
WDV - 31.23%
HIRE BASIS:
SLM - 15.83%
WDV - 39.3%
RRJ
(Student CA Final )
(57 Points)
Replied 09 September 2015
calculate your own by using this formula:
1-POWER(RV/WDV),1/USEFUL LIFE.
EXAMPLE:
Motor buses, motor lorries, motor cars and motor taxies other than those used in a business of running them on- USEFUL LIFE- 8 YEARS.
WE CALCULATE THE RATE BY TAKING RESIDUAL VALUE 1% OF COST
FOR A NEW ASSETS WE SHOULD USE (RV/COST)
SUPPOSE COST OF ASSETS IS RS. 100
USEFUL LIFE 8 YEARS
STEP 1:- CALCULATE RV/ COST =1/100= 0.01
STEP 2:- PUT THE VALUES IN A EXCEL SHEET AS MENTIONED AT TOP
1-POWER(0.01,1/8) =43.77%
THIS FORMULA SHOULD BE USED WHEN FIRM IS FOLLOWING WDV METHOD.
FOR SLM METHOD:
BY TAKING COST AS RS.100 AND RV 1% OF COST
DIVIDE: 100-1 =99/USEFUL LIFE*100
99/8*100=12.38%.
FOR CAR RUNNING ON HIRE CHANGE ONLY THE USEFUL LIFE IN THE ABOVE FORMULA.
YOU CAN TAKE RV OTHER THAN 1% IN THAT CASE MAKE NECESSARY CHANGES IN THE ABOVE FORMULA.
HOPE IT HELP YOU.
THANKS
RAJIV
Shubhangi Mathur
(student)
(127 Points)
Replied 09 September 2015
Shubhangi Mathur
(student)
(127 Points)
Replied 09 September 2015
Nitin Gupta
(CA Final Student)
(66 Points)
Replied 12 September 2015
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