Depreciation as per Companies Act

the calculation will be as follows

47390*16.21%*((31stMar10-20thnov09)/365)

Yes, under companies act the depreciation is to be charged on assests for the no.of days for which it has been used and under the income tax act, if the assets has been purchased before or on 30th Sep.09 then for full year, if purchased after 30th Sep.09 then depreciation is to be charged for Six Months

Dear Sir,

Agree with above replies that Depreciation under Companies Act is to be charged on pro-rata basis.

Just want to add one thing that invariably the depreciation is provided from the date of such acquisition but it can very well be an accounting policy of the company to provide the full month's depreciation  in rspect of the month of acquisition. Or Conversely to provide Depreciation from the next month. In this case a disclosure would be required in notes to accounts.

HERE IS MY FILE ON DEPRECIATION RATES AS PER COMPANIES ACT

As per companies act

Under SLM Depreciation = 2778

Under WDV Depreciation = 6855

Gentlemen

Many thanks for your clarifications.  However I cannot understand how the figure of 6855 has been arrived at.  The computer was used for 141 days in the year.    Hence on prorata basis the depreciation should work out to Rs.2967 i..e. Rs/ 47390X16.21X141divided by 365 and 100.

Kindly clarify. 

Ashok Monga

Dear Mr.Ashok,

If it is purchased on 20th November, then it figures out to be 132 days upto 31st March,

In this case, Mr.Suresh's Answer is perfect as under:

SLM : 47390 x 16.21% x 132 / 365 = 2778

WDV : 47390 x 40% x 132 / 365 = 6855

AGREED WITH EXPERTS..

REGARDS,

MANOJ

Hello,

If i purchase a second hand car for Rs. 175000.00 how to calculate the depriciation as per Co, act & I.T act ?

Can some one guide me how to calculate.

thanxs all.

Dear sirs,

I would like to know, that if a compay follows to depreciate its assets as per IT act only, then is there any liability comes to take as Deferred Tax liablity.

Dear Sir Plz clarify whether a private limited company can charge depreciation on some of its assets on SLM basis and rest of the assets on WDV basis. If yes, plz specify the relevant point of law and case study, if any.

Thanks