Suppose I Have Opening Balance Of Machinery as 100000
I Received Subsidy From Government Of rs. 5000 in The month Of march.
How do i Calculate Depreciation As per Companies Act As well As IT Act.???
Suppose I Have Opening Balance Of Machinery as 100000
I Received Subsidy From Government Of rs. 5000 in The month Of march.
How do i Calculate Depreciation As per Companies Act As well As IT Act.???
(100000-5000)*RATE OF DEP
As per AS-10 Accounting for Fixed Assets.Any subsidy received from govt shall be reduced from the cost of fixed asset and then the remaining value shall be taken into consideration.So u have to deduct 5000 from 100,000 then apply depreciation rate on the remaining amount in both cases(i.e as per IT Act and as per Co. Act)
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