depriciation

This query is : Resolved

CA SONI KRUNAL (Querist)
Follow

14 July 2010 can anybody plz tell me requirement of dep as per co's act , what are the requirement of getting only 95% dep only for a partiular assets and there after show it as dead stock only?
plz give me section reference also

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

14 July 2010 AFTER GETTING 95% DPE ON A PARTICULAR ASSET , THE WDV OF ASSET (5% ) IS SO LOW WHICH IS REQUIRED TO SHOW ANY ASSET IN A BLOCK.
IT IS NOT DEAD STOCK. IT IS THE ASSET WHICH IS USEABLE AFTER DEPREICATED 95% OF TOTAL VALUE.
IF WE CLAIM DEP AFTER 95%, THEN VALUE OF ASSET WILL BE NIL AFTER SOME TIME, WHILE IT IS USEABLE AND CONSISTS IN BLOCK OF ASSET. THEN FOR A RECORD OF THAT ASSET AT NEGILIBALE VALUE I.E 5%.