dep. on asset below 5000

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Anshul (Querist)
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01 September 2009 asset below 5000 are item wise or gross figure of particular asset

for eg:- 100 mobiles costing 4800 are purchased....

......then we will depreciate it 100%

.............or 13.91%

someone told me that in comentry of p&l it is given that will check the value as a whole..... so here dep rate will be 13.91%........
is he correct ?????

plz also giv legal evidence....or case reference........and r commentry a suffficient legal proof???????

CA Ravi Kumar Murugesh

CA Ravi Kumar Murugesh (Expert)
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01 September 2009 as per Schedule XIV:
Notwithstanding anything mentioned in this Schedule, depreciation on assets, whose actual cost does not exceed Rs. 5,000 shall be provided depreciation @ 100%.

Provided that where the aggregate actual cost of individual items of plant and machinery costing Rs. 5,000 or less constitutes more than 10% of the total actual cost of plant and machinery, rates of depreciation applicable to such item shall be the rates as specified in Item 11 of the Schedule.

So, you have to see each and every individual item as a separate item and can charge 100% depreciation, if the cost of that item is below Rs.5000/-