Depriciation query-urgent

rates in schedule xiv are minimum rates so you can charge depreciation at a rate which is higher than rates prescribed in schedule xiv and not at a lesser rate in contrast to schedule xiv .You can charge 100% depreciation on assets costing less than 5000 to claim maximum tax shield  and it is permitted in schedule xiv 

Shreyans,

Before charging depreciation @ 100% you also consider the a proviso of Schedule XIV of companise act which is as follows:

8. Notwithst&ing anything mentioned in this Schedule depreciation on assets, whose actual cost does not exceed five thous& rupees, shall be provided depreciation at the rate of hundred per cent:

Provided that where the aggregate actual cost of individual items of plant & machinery costing Rs. 5,000 or less constitutes more than 10 percent of the total actual cost of plant & machinery, rates of depreciation applicable to such items shall be the rates as specified in Item II of the Schedule.

The concept of materiality has been applied at the time of writing of this proviso, It clearly sates if the P&M having value of 5000 or less but constitute more than 10% of total value of P&M then depreciation shall be charged normally.

For your perusal Sch XIV is being attached

@ prabhakar

Leave Plant & Machinery, iam talking in general, wheather a fixed asset whose actual cost per unit is less than 5000/- should be or can be depriciated @ 100%?

Which means if a company charges less than100% depriciation on assets less than 5000/-, isnt it a wrong valuation ifwe bring into mind the schedule XIV

please provide me the depreciation Rates chart with example of the one year.

please provide to my mail id :madankumar133 @ gmail.com

Thnaking you,

Regards,

Madan Kumar.

Originally posted by : Shreyans jain
	@ prabhakar Leave Plant & Machinery, iam talking in general, wheather a fixed asset whose actual cost per unit is less than 5000/- should be or can be depriciated @ 100%? Which means if a company charges less than100% depriciation on assets less than 5000/-, isnt it a wrong valuation ifwe bring into mind the schedule XIV

Answer is - SHOULD BE

(because the word used in Sch XIV is "shall be")

Originally posted by : Shreyans jain
	@ prabhakar Leave Plant & Machinery, iam talking in general, wheather a fixed asset whose actual cost per unit is less than 5000/- should be or can be depriciated @ 100%? Which means if a company charges less than100% depriciation on assets less than 5000/-, isnt it a wrong valuation ifwe bring into mind the schedule XIV

Answer is - SHOULD BE

(because the word used in Sch XIV is "shall be")