Additional depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2016 Dear sir,
As per companies act. Weather additional depreciation can be claimed or not....

Please confirm.....

Ankur Singhal

Ankur Singhal (Expert)
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25 March 2016 Dear
Additional depreciation only exists under income tax act.
there is no such term in companies act.

The difference in amount of depreciation claimed under income tax act and companies act will create the deffered tax liability under AS-22.

Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2016 Sir SLM method is being used in company but the company had purchased the machinery which is eligible for 20% Additional depreciation i mean 15% normal dep. And 20% additional dep. Total 35%, but as we would charge as per company act. And this 35% as per income tax will create the deffered tax liability.. right

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Ankur Singhal

Ankur Singhal (Expert)
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25 March 2016 Dear
The depreciation charged under income tax minus depreciation charged as per companies act would create Deffered tax liability.

Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2016 Sir i request you to give me an example of creating deffered tax liability that how it will arries, its accounting treatment etc...