Deperation rate

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umesh bhardwaj (Querist)
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15 September 2011 Dear Sir,
i am accountant of a electronic firm, i am making balance sheet of firm, pls. provide me Deprciationn rate according to co. act,
i am confuse that, rate of deperation on mould -40%, but mould is co. under plant & machinery, so i charge deperation on mould 40% or 13.91%, because on plant &machinery depr. rate 13.91%
so pls. guide me

Thanks,

Umesh Bhardwaj

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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26 September 2011 Companies act only says about the minimum rates of depreciation, which r required to be charged. It should be 13.91 % depreciation on same, but if you want to charge high depreciation, you r eligible to charge the same, but appropriate disclosure of the same is required to be made in the Accounting Policies

The file attached is about rates of depreciation

http://www.mca.gov.in/Ministry/latestnews/Explanatory_Statement_alongwith_Schedule_XIV_4dec2008.pdf