Hello,
Need help.
What rate of depreciation is charged for mobile phones as per companies act 2013?
As per general rate of plant and machinery at 13.91 % for useful life of 15 years
Or accounted as office equipment and charged 45.07 % with useful life 5 years?
As per the Companies Act 2013, mobile phones are classified as "Electronics" and are considered as "Office Equipment".
Therefore, the depreciation rate applicable is: - 45.07% (Rate) x 5 years (Useful Life)
This is as per Schedule II, Part C, Section 2 (ii) of the Companies Act 2013.
The general rate of plant and machinery at 13.91% with a useful life of 15 years is not applicable to mobile phones.
So, the correct depreciation rate for mobile phones is 45.07% with a useful life of 5 years.
Keep in mind that these rates are subject to change.
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