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Depreciation as per companies act 2013

potnuri srinivas (article assistant) (202 Points)

21 June 2016

An individual transfer's assets to the company.Now my question is how to calculate depreciation on the assets transferred by individual as per companies act 2013?

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3 Replies

Jignesh (Student CA Final ) (40 Points)
Replied 21 June 2016

Hello Gayatri,

Company have to calculate Dperication as per Schedule II of Companies Act 2013, which gives the usefull life of Various asset & you have to calculate deprication on the book value of asset as on transfer date of Individually's Asset to the Company.

potnuri srinivas (article assistant) (202 Points)
Replied 22 June 2016

Hello,

My Name is Srinivas. Now my question is what date i have to take as date of purchase. Is it's date of transfer/date of purchase by the individual.

Jignesh (Student CA Final ) (40 Points)
Replied 22 June 2016

Hello Srinivas,

Apologize for worng name, As per Income Tax Act, if all the condition under section 47(xiv) is fulfilled then their is no transfer of capital asset company has calculate depriciation from start of the year in which conversion takes place if condition not fulfilled at all then these all asstes are considered as transfer and deprication is from the date of conversion or succession of the company.

As per companies act, the depriciation is calculated as per schedule II and from date on which the comapny actually put use the asste for bussiness purpose or depriciation is calculate as per no. days used by the company.