PLZ TELL ME WHETHER DEPRECIATION AS PER COMPANIES ACT IS CHARGED ON FULL COST OF THE ASSET OR 95%?
IF IT IS 95% PLZ TELL ME THAT WHERE IT SI WRITTEN?
Karuna Sethi (CA) (838 Points)
05 June 2010PLZ TELL ME WHETHER DEPRECIATION AS PER COMPANIES ACT IS CHARGED ON FULL COST OF THE ASSET OR 95%?
IF IT IS 95% PLZ TELL ME THAT WHERE IT SI WRITTEN?
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8310 Points)
Replied 05 June 2010
Ya it is charged on full cost of the asset not 95%.
Varun.T.K
(CA Final, CS Executive)
(365 Points)
Replied 05 June 2010
No doubt...On the full cost of asset.
Mayank Saraogi
(Learner)
(170 Points)
Replied 06 June 2010
even my knowledge says it has to be on full cost (what i have been doing these tears )
I m not mocking u but could u plz tell me the source for ur query????
varun gupta
(Senior Accounts Officer)
(89 Points)
Replied 06 June 2010
As per companies act , depreciation will be provided on full cost of asset. maximum depreciaton u could provide on fixed assets in 95%(cumulative)of cost. WDV of asset cannot go below 95% unless discarded.
Mayank Saraogi
(Learner)
(170 Points)
Replied 06 June 2010
ooo yes mr. varun thnx for reminding me
I totally forgot tht Karuna was getting confused for this reason
Karuna Sethi
(CA)
(838 Points)
Replied 08 June 2010
"As per companies act , depreciation will be provided on full cost of asset. maximum depreciaton u could provide on fixed assets in 95%(cumulative)of cost. WDV of asset cannot go below 95% unless discarded."
thanx
but plz tell me the source
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