Dear Friends,
If in a book of company rates of depreciation is lower than Sch xiv and now company want to change the same and bring it to the rates as per Sch xiv. Now the Question is whether change in rates will lead to retrospective effect or prospective effect in books?
Please for refrence also post the content (AS, GN, Circular, or any other matter) which support the answer
Reply soon.....
Waiting for the response............. :)
Hi Sneha,
First of all, the rates given in Schedule Vi are Minimum rates... The company can provide Higher rates than rates given in Sch- VI but not lower rates.
Present case which you quoted, is an example of non compliance with Sch-VI. So, what you can can do is make sure that company provides depreciation in books, as per rates prescribed and not lower for each & every class of assets...
Regards,
S.B.G. & CO. CHARTERED ACCOUNTANTS
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