Thanks in Advance

Statutory Audit 1056 views 2 replies

Robin Kumar Gupta

profession

179 Points Posted on 21 June 2010

As we know that as per companies act depreciation on computer is 40%.

But in case of banks there is notification or guideline issued by RBI to charge depreciation @ 33.33% on computer. Almost in all the annual reports of the bank you will find depreciation @ 33.33% only.

CAN ANYBODY SHARE THAT NOTIFICATION WITH ME. I HAVE SEARCHED A LOT ON THE NET BUT DIDN'T SUCCEDED.

plz help.

Replies (2)

Mitali Agarwal

Company Secretary

638 Points Posted on 22 June 2010

Please find below the required Circular:

Date: Jan 19, 2006

StCBs/DCCBs - Charging of Depreciation on Computers

RBI/2005-06/ 276
RPCD.CO.RF.BC.No. 62 /07.40.06/2005-06

January 19, 2006

All State Co-operative Banks (SCBs) and
District Central Co-operative Banks (DCCBs)

Dear Sir,

Charging of depreciation on computers – Method and rate thereof

As you are aware, NABARD has already issued a circular (ref.no. NB.IDD.COOP. (ST) Pol./282/V.20/2004-05 dated July 01, 2004) regarding charging of depreciation on computers.

2. It is reiterated that all SCBs / DCCBs should continue to charge depreciation on computers on a straight-line method at the rate of 33.33 percent per annum. This would enable the banks to replace the outdated / obsolete computers and related hardware within a period of three years as in view of the rapid developments in technology, it is likely that the installed computers and related hardware may become outdated / obsolete within a short period, needing replacements / upgradations.

3. Please acknowledge receipt of this circular to our Regional Office concerned.

Yours faithfully,

(K. Bhattacharya)

General Manager

Robin Kumar Gupta

profession

179 Points Posted on 22 June 2010

Dear Mittali,

Thanks for your efforts.

I have just one query that this circulars specifically authorises SCB and DCCB's and not to scheduled banks. Whether this circular will apply to scheduled banks also. If yes, then what is the base behind that.

Thanks in advance