Depreciation query

you have to follow comapy act for rate ,for method you may choice WDV or streight line as per your choice but once method is choice you have to regurly follow same system(consistency)

Companies have to apply the rates mention under sch IV of companies act.However if the same are below the rates mentioned in Sch IV the fact should be mention in Notes to Accounts and the auditor will have to mentioned the Same in his/her Audit report and will also have to quantify the effect of the same on profits

Dear Sabhya,

A company can charge a Different Dep. rate than the rate specified in the company act. If the company has charged a different Dep. rate than a DISCLOSURE, showing Dep. rate charged or the useful life taken othe than specified in the company act, should be made in the financial report.

The company should have proper working to prove the same differance.

In your case the company can charge a lower rate of dep. but it have to satisfied the above condition and should make a proper DISCLOSURE.

With Regards,

it should be according to rates mentioned in law

you need to apply rules as per company act

If any capmpany apply depreciation rate which is different from the companies Act.

Then, the auditors just have to mention in his Audit Report.... that it.....