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Depreciation on Four Wheelers for office purpose

Others 396 views 5 replies

Hi ,

We have purchased Four Wheelers for our office purpose. We are not using this  Four wheeler for operating travels. Please advise what is the life time of vehicle and Depreciation rate under SLM method.

 

Thanking you,

Srinivas.

 

Replies (5)

Depreciation rate 15.83% and life is 6 years

Hi, 

One more clarification, purchase of mobile for business purpose. What is the life time of mobile for calculating depreciation 

Communication devices used for supervision of business, it’s 40%. Useful life is not available. 

https://www.simpletaxindia.net/2017/02/depreciation-on-mobile-phone-atm-ponds-interesting-issue.H T M L

as per this article it is classified as PPE or other class assets. If I was treating it, I’ll include into the carrying amount and use the accounting treatment of replacement parts with nil scrap value. Ie derecognise the mobile value after its useful life and upload new mobile value. I’m sure you have other methods cooked up. 

I found the answer, it’s called end user devices where useful life is 3 years and depreciation is 31.67% SLM & 63.16% WDV. https://www.taxadda.com/depreciation-rates-as-per-companies-act-2013/


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