LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Depreciation on mobile

Vinayak Parab (Internal Auditor) (45 Points)

01 August 2013

Can company write-off 100% value of mobile phone purchased by them?

Reply
Follow
Share

16 Replies

CA Kunal Mishra (Consultancy Service) (172 Points)
Replied 01 August 2013

Can be depreciated 100% only when cost of mobile is less than Rs.5000, otherwise it has to be capitalised.

1 Like

Akash (CA Final (2nd Group Pending)) (876 Points)
Replied 01 August 2013

15% depreciation.

Vinayak Parab (Internal Auditor) (45 Points)
Replied 01 August 2013

Originally posted by : Kunal Mishra
	Can be depreciated 100% only when cost of mobile is less than Rs.5000, otherwise it has to be capitalised.

Thanks for your reply...but what if company has written internal policy for the same & statutory auditors are adding note for the same in financial statement?

CA Kunal Mishra (Consultancy Service) (172 Points)
Replied 01 August 2013

It can be done .

Mihir Doshi (B.Com, CA, CS, LLB) (2187 Points)
Replied 01 August 2013

As per Comapny Act

SLM - 4.75%

WDV-13.91/-

As per Income Tax Act

15% on P & M

1 Like

CA Kunal Mishra (Consultancy Service) (172 Points)
Replied 01 August 2013

Agree with Mr. Mihir.

A.JAGADEEP (ARTICLE STUDENT) (151 Points)
Replied 01 August 2013

The internal policy of the company is to write-off the cost of mobile phone, but internal policy should not Violate the Statutory rules. so company must change their policy.

chethan (Student CA IPC / IPCC) (33 Points)
Replied 01 August 2013

As per the IT Act 1961 if cost of mobile is less than Rs.5000/- then depreciated 100%, otherwise 60% capitalised.

1 Like

CA Kunal Mishra (Consultancy Service) (172 Points)
Replied 01 August 2013

Mr. Chetan pls provide me relevant section which provide to dep 100% if cost less than Rs.5000. Bcoz there is nothing like this in IT Act & the same is provided in companies act depr Schdule.

Soham (Learning ) (534 Points)
Replied 01 August 2013

As per Comapny Act SLM - 4.75% WDV-13.91/- As per Income Tax Act 15% on P & M

Bhav Bhuti Sharma (Towards Professionalism ) (823 Points)
Replied 01 August 2013

Companies Act

As per schedule XIV Notwithstanding anything mentioned in this Schedule, depreciation on assets, whose actual cost does not exceed Rs. 5,000 shall be provided depreciation @ 100%.

As per income tax act

You have to add asset in the relevant block charge depreciation as per income tax act 1961 i.e 15%

akshay kumar surana (practice) (27 Points)
Replied 01 August 2013

Yes kunal you r right

suresh (Manager Finance) (21 Points)
Replied 02 August 2013

As per the Companies Act 1956 the rate of depreciation is 4.75% on office equipment which is mandotory as minimum rate of depreiation and you can depreciate more than minimum depreciation rate as per the company policy under the Companies Act only. But as per the IT Act you have to depreciate 15% on WDV.

shiv shankar rawat student CMA (Manager) (263 Points)
Replied 03 August 2013

Dear All

Mr. Kunal is write, bcoz as per company act 1956 of schdule XIV under section 205 and 350, in this schedule, deprection on assets, whose actual cost does not exceed of Rs. 5000/- shall be provided at the rate of 100%

Shiv