Pls clarify me,
What is the depreciation rate for the library books (around Rs.65,442), purchased by educational institution (management pvt ltd) registered as Private Limited company, registered under Companies Act,1956.
Rate of dep. as per Income Tax Act???
Rate of dep. as per Companies Act????
or it may be treated as Expenses????
Dear PASUPATHY PARAMAGURU,
Since it a Company, whether private or public, the rate of Depreciation under IT act or Companies act are the same. i.e 100%.
However, if the Induvidual cost of the Book is more than Rs. 5000/- , then the rate of Depreciation would be 13.91%.
In your case, assuming the Cost of the Induvidual book is more than Rs.5000/-,
Depn as per IT act - - - 65,442
Depn as per Co act - - 9,103
Deffered tax 18,592
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