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Depreciation method


Nitish Agrawal (CA)     08 March 2017

Nitish Agrawal
CA 
 93 likes  810 points

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can companies at their own discretion choose method of depreciation??? or is there any fundamental rule which makes companies liable to choose one method or another.

avater

sivaram (Asst Mgr-Taxation)     08 March 2017

sivaram
Asst Mgr-Taxation 
 514 likes  6913 points

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companies at own discretion may choose straight line or WDV but after companies act 2013 companies prefer straight line because of easy way of computing depreciation  general criteria is if repairs and mainteance are incurred  to maintain an asset the preferable method would be WDV 


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