Depreciation

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2011 I want to know what is the difference in the computation of depreciate calculated on the basis of Income Tax vis-a-vis the Companies Act.

How do you account for the difference in the cash flow statement, so that the balance sheet and cash flow matches?

need this answered ASAP.

Also, what would be the depreciation rate for a golf simulator via both the methods (WDV).

thanks

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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15 June 2011 Accounts are prepared and depreciation is charged in accounts as per Companies Act. Depreciation for Itax is calculated separately and not reflected in accounts. Therefore, there is no effect of depreciation as per itax on cash flow.

As regards golf simulator please inform about the nature of business of the company.

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2011 Thanks Sirji.

So the IT Rate of Dep. is taken only to get tax benefit from depreciation?

For the rest of the query, please give me your email id, as this is confidential.

thanks

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