Depreciation
This query is : Resolved
21 May 2012
Can a Co. stop charging depreciation if it had stopped manufacturing & is a loss earning co.?
22 May 2012
Yes, only if satisfies the crteron of AS 10
14.2 Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realisable value and are shown separately in the financial statements. Any expected loss is recognised immediately in the profit and loss statement.
14.2 Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realisable value and are shown separately in the financial statements. Any expected loss is recognised immediately in the profit and loss statement.
23 May 2012
if the query is with reference to income tax, then the depreciation has to be charged as long as the asset is kept ready for use regardless of it being actually used.
secondly, depreciation has nothing to do with profitability or otherwise of the company. it has to be charged even if company has incurred loss. if it is not charged and the return is filed accordingly, then AO calculates depreciation and loss thereafter.
secondly, depreciation has nothing to do with profitability or otherwise of the company. it has to be charged even if company has incurred loss. if it is not charged and the return is filed accordingly, then AO calculates depreciation and loss thereafter.
27 May 2012
Depreciation is for effux of time. Company should provide depreciation in accordance with the circular issued by the Registrar of Companies.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Manual Rectification through AO
- IT Return filed defective u/s 139 (9)
- Fixed Deposit Claim Relinquishment by the Nominee
- Defective Return - Tds on advance
- Income Type for interest from government bonds
- TCS ON SOFTWARE SALES
- Not a CA , can we prepare balance sheet
- Valuation of diamonds as on 01.04.2001
- What is meaning of merging of expenses or income in accounts
- Accounting treatment of write off sundry debtors
- Gstr 9 2023-24
- GSTR-9 HSN Summary and Credit Note without item
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- GST RCM not shown in GSTR-3B
- Bill from Dispatched from issue.
Trending Online Classes
-
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
Mr.Balamurugan Ranganathan15 November 2024
CAclubindia
