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Depreciation as per schedule 2

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Atharv Sankliya

1359 Points Posted on 19 January 2023

does it is mandatory to calculate depreciation as per company act 2013 or company can calculate in their own method?

Replies (6)

Quick Summary

This discussion clarifies whether companies must adhere to the depreciation rates specified in Schedule 2 of the Companies Act 2013. It confirms that following these rates is mandatory. However, if a company believes an asset's useful life differs from Schedule 2, they must provide documented technical justification.

sabyasachi mukherjee

Profession Business

28246 Points Posted on 19 January 2023

There are many softwares. Input of necessary data can automatically prepare fa schedule.

Yasaswi Gomes new

Finance

4592 Points Posted on 19 January 2023

Im working on tally right now, but have to pass F7 journal still.

sabyasachi mukherjee

Profession Business

28246 Points Posted on 19 January 2023

In tally also detailed fa schedule can be keyed in.

Atharv Sankliya

1359 Points Posted on 19 January 2023

My question is whether it is mandatory to follow the rate given in the schedule 2 ?

Yasaswi Gomes new

Finance

4592 Points Posted on 20 January 2023

Yes it is manfatory

rahul Srivastava

PROPRIETOR

28 Points Posted on 20 January 2023

It is mandatory, however if the useful life of asset is different from the one mentioned in Schedule II, that need to be justified and documented with a technical reason.