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Rate of Depreciation

Others 2256 views 4 replies

Vipul

Business

76 Points Posted on 08 July 2011

Can somone please confirm if the following rates are right or not as per COMPANY'S ACT ???

Computers - 16.21% SLM 40% WDV
Furniture and Fittings - 6.33% SLM 18.10% WDV
Office Equipment (Can it be taken under Furniture and Fittings) - 6.33% SLM 18.10% WDV
Vehicles - 9.5% SLM 25.89% WDV
Computer Software - Intangible Asset? - 10% SLM only (since w/o 10 yrs)

Replies (4)

Tom S Peter

Article

148 Points Posted on 08 July 2011

Rates are correct except for Office Equipments and software. I dont think Office equipments can be taken under Furniture & Fittings.

Regarding Software i/m not sure.

CA HARISH

Chartered Accountant

57 Points Posted on 08 July 2011

Rates correct. Office equipment cannot be taken under furniture. It would fall under plant & m/c. Software 10yrs is only rebuttable presumption as per AS 26. If it is reasonable that it has a got a shorter life, then depreciation at higher rate is advisable. Also all rates given in Companies Act are only minimum rates.

Vipul

Business

76 Points Posted on 09 July 2011

Wokay, thanks buddy... but Why is Office equipments under plant and machienry? and btw the company doesnt have any P&M so just office equipments as P&M wont make sense right?