Depreciation as per comapny act 2013

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Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2015 CAN ANY ONE TELL ME HOW TO CALCULATE DEP RATE AS PER CO ACT 2013 IN WDV METHOD

WHAT FORMULA WE HAVE TO USE

THANKS IN ADVANCE

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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20 April 2015 http://taxguru.in/company-law/rates-depreciation-companies-act-2013.html

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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20 April 2015 http://www.club4ca.com/formats/wp-content/uploads/2013/10/Depreciation-Rate-chart-companies-act-2013.pdf

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 April 2015 In Schedule II useful life is given.

WDV rates are determined using mathematical formula in such a way that at the end of the usefull life of the Assets, after charging depreciation under WDV, residual value will be same as under SLM method. You charge depreciation under any method the residual value at the end of useful life will be same under both.

You can try calculating WDV rate yourself using below formula:

r = 1-(s/c)^(1/n)

Where,

r = rate of depreciation
s = scrap value
c = cost of assets
n = no. of year of life of assets

For example take Plant & Machinery:

r=1-(5/100)^(1/15)
=18.10%

Check out the rates from link given below:

https://www.caclubindia.com/share_files/depreciation-rate-chart-59179.asp

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 April 2015 Also check out Application Guide on the provisions of Schedule II to the Companies Act 2013 by Corporate Laws & Corporate Governance Committee of ICAI from link given below:

http://220.227.161.86/37329clcgc27675.pdf