subuddhi mohanprasad (75 Points)
26 June 2018
Dipika Shah
(Partner)
(188 Points)
Replied 26 June 2018
For companies depreciation is computed in books of accounts as per the rates prescribed in Schedule II of Companies Act,2013. The rates should be adopted based on the method followed by the company consistently i.e., either SLM or WDV.
If the company is subject to tax audit u/s. 44AB of the Income Tax Act, 1961 then depreciation has to be computed even as per Rule 5 of Income Tax Rules seperately which forms part of the tax audit report.
Please understand the depreciation for companies under companies act and income tax act are two seperate calculations and connot be mixed. It has to be done seperately under each act
ROHIT KHUTETA
(STUDENT)
(87 Points)
Replied 26 June 2018
CAclubindia
