Manager
50 Points
Joined July 2009
I differ with above. The depreciation under the Companies Act are under schedule XIV of the Companies Act 1956, which are the minimum rates. The Company can chose to have more than schedule XIV rates basis useful life assessed by the management. Under income tax, rates are different and it is mandatory to follow those rate. The difference in income tax rate and companies act rates gives rise to deferred tax and the same is accounted as per AS 22.