Hello Good Morning Export,
I have a Query on Depreciation as per Company Act, 2013 for Pvt Ltd Company.
which below Calculation A) or B) is Correct on WDV method of Depreciation as per company Act 2013.
if A pvt ltd Company purchase Computer at 100000 on 01.04.2020
Dep as on 31.03.2021 A) =100000 - 5000 (5000 is residual Value)
= 95000
= 95000X63.16/100
Dep as on 31.03.2021 = 60002
OR
B) =100000X63.16/100
Dep as on 31.03.2021 = 63160
My question is in WDN method of latest Company Act, 2013.
If asset value is 1000000 then we calculate depreciation on 100000 or 95000 ?
I think WDV formula is 1-(residual value/cost)^1/n. So only straight line method deducts scrap value.
Use calculator online using three years life
https://indiantaxstudy.com/calculate-depreciation-online-slm-wdv/
@ Rashmi my laptop is working from last 10 years succefully with new HD. How to evaluate it?
Thank you so much @ Rashmi Madam
Thank you so much @ Yasaswi Gomes
Hi can someone please explain me this:
I was calculating DTA/DTL on depreciation from SLM & WDV. The formula in the text book is saying
SLM-WDM=Temporary difference
Then (Temporary difference* Tax rate*-1) why -1? because of this -1, all positive temporary differences are becoming DTL's and all negative temporary differences are becoming DTA's
For my question I'm changing it to WDM-SLM = TEMPORARY DIFFERENCE. THAT SHOULD SORT OUT -1 ISSUE
| Particulars | For Book | For Tax | Difference | (DTA)/DTL @ 30% |
| Income | 1000 | 800 | 200 | |
| Opening Balance of (DTA)/DTL | – | – | – | – |
| Depreciation | 100 | 200 | 100 | 30 |
| Sales Tax payable | 50 | 0 | (50) | (15) |
| Leave encashment | 200 | 100 | (100) | (30) |
| Closing balance of (DTA)/DTL | – | – | – | (15) |
This example is also a wrong example. Carrying amount - Tax base = DTA/DTL
Tadaah. People are manipulating taxes and misguiding students through AS accountants. In IFRS and INDAS, strict adherence in the financial reports that they cannot measure anything like WDV-SLM but it must be like SLM-WDV or else a penalty will be imposed on the CA. SO better make real examples and post them here, or else be prepared for the repercussions.
So DTA/DTL= (Temporary difference*Tax rate*-1)
Online Criminals!!
CAclubindia
