Whether assets costing less than Rs. 5,000 need to be capitalized first and then depreciated 100% in the same year or it can be directly charged to income statement in the year of purchase without capitalizing the same? The pratice of directly charging to income statement (threshold level is different for different countries) is allowed in most foreign countries. Whether the same is permissable in India also in view of the provisions of existing Companies Act? Is there any bar on this treatment?
Rajeev Kumar Verma (Service) (32 Points)25 June 2010