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depreciation where

amit suthar (accountant) (34 Points)

24 December 2008

dear sir,

as per income tax depreciation & as per company act depreciation wheres entries ?

pls immediates answer reply me.

amit......

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12 Replies

(Guest)

entries for depreciation is same in both cases but rate of dep. is different

Heemanshu Malik (PCC STUDENT) (132 Points)
Replied 24 December 2008

hi all,

entries are same for depreciation in both cases but depreciation rates are different

CA Nallathambi Srinivasan (Audit Team Member) (1584 Points)
Replied 24 December 2008

Yes Depreciation rate only different.

pappu mishra (Service) (121 Points)
Replied 25 December 2008

DEPRICAITION ENTRIES IS SAME ON BOTH THE CASES. IN THE BOOKS WE WILL ENTER DEPREDIATION AS PER COMPANY ACT

srilakshmi (ca final) (369 Points)
Replied 08 January 2009

DEPRECIATION AS PER IT & CO. ACT'S ARE DIFFERENT BUT THE ENTRIES ARE SAME , WE HAVE TO CREATE DEFFERED TAX LIABILITY IF THERE IS ANY DIFFERENCE BETWEEN IT & CO. ACT'S DEPRECIATION

MANISH MODI (CONSULTANCY) (22 Points)
Replied 08 January 2009

ENTRIES FOR THE DEPRECIATION IN THE CASE OF COMPANIES & IT ACT ARE SAME, ON LY RATES ARE DIFFERENT BUT DEPRECIATION TO BE ENTERED IN THE BOOKS ACCORDING TO COMPANIES ACT AND DEFFERED TAX LIABILITY SHOULD BE GENERATED IN ACCORDANCE OF IT ACT.

Koneri Balaji (CHARTERED ACCOUNTANT) (120 Points)
Replied 09 January 2009

Depreciation entries are same but in accounts books company rate and for calculating income tax - income tax rates are used.

(Guest)

there is no entry of dep as per it in the books of accounts .........depreciation as per it is calculated in schedule while doing income tax computation................any difference in the total depreciation will be shown in books as deffered tax liability or asset as the case may be.

V P Narasimhan (Accounts Manager) (791 Points)
Replied 25 January 2009

The difference arrived between the Companies Act Deprecation & Income Tax depreciation have to be treated as Deffered Tax Asset or Liability as the case may be depending upon the + balances

lokeshlovi (C.A.student) (49 Points)
Replied 27 January 2009

the way to chargng dep is different in income tax and in co. in co.dep on machinery is charged on shift basis n in income tax it charges on time basis but one may adopt most appropriate base

entries areas follows

dep a/c dr

to F A a/c

2) p/l a/c dr

to dep a/c

or u may create depreciation reserve a/c to charge dep

Manan Jain (Proprietor) (238 Points)
Replied 28 January 2009

Dear All.
There is no entry for depreciation as per IT it is just computation while preparing ITR & Schedules. Moreover it is on Company to provide depreciation as per IT or Companies Act., but Companies Act always over rules the IT. The Rates of Depreciation are prescribed in Schedule XIV of Companies act Which are minimum, one can provide more but not lesser than that. The Difference due to the different rates of depreciation is reflected by adusting it through Deferred Tax Liability or Asset as the case May be

(Guest)

Originally posted by :Manan Jain
"	Dear All. There is no entry for depreciation as per IT it is just computation while preparing ITR & Schedules. Moreover it is on Company to provide depreciation as per IT or Companies Act., but Companies Act always over rules the IT. The Rates of Depreciation are prescribed in Schedule XIV of Companies act Which are minimum, one can provide more but not lesser than that. The Difference due to the different rates of depreciation is reflected by adusting it through Deferred Tax Liability or Asset as the case May be	"