Depreciation Accounting

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Please suggest on how depreciation will be charged in following situation as per the Co.Act and IT Act

Date of Purchase of Plant and Machinery: 15th Sept 201X
Price paid to vendor on account of Purchase of P&M: Rs 150,000/-
Date of Installation: 8th Oct 201X
Price Paid for Installation of P&M : Rs 15,000/-

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On 10 July 2011 at 20:13 Report
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CHARTERED ACCOUNTANT
479 Points Joined July 2008

dep as per income tax act will be  50% since when calculate it when p n m is ready for use

so dep.=165000*15%*50*

dep as per co act would be=13.91%*150000*(days from 15 sept. to 31 march/365)

plus 15000*13.91*(days from 8th oct 2010 to 31st march 2011)

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On 10 July 2011 at 21:32
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On 10 July 2011 at 21:46
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As per IT act it will be charged on 165000 @ 7.5%

As per Co. Act it will be charged on 165000 @ 13.91%*174/365

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On 10 July 2011 at 22:05
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ca final
169 Points Joined April 2011
True, as per IT act, dep rate shall be 7.5% & amt 165000. For provisions refer some good book .. n search in PGBP.
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On 11 July 2011 at 02:46


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