04 September 2009
Please let me know, under what conditions we can provide the Depreciation Rate more than permitted by Companies Act & what are the pre-requisites for that.
the rates for depreciation mentioned in the Compancies Act, are only the minimum rates. You can always go for a higher rate of depreciation depending on the business/usage of the Asset.
for example: rate of depreiciation for computers is 16.21, but where as the companies in software indurstry normally depreciate the asset over a period of 3 years.
hence you can always charge depreciation more than the rates specified in the Companies Act.
CAclubindia
