As per the companies act. shedule XIV notes in the schedule, if the cost of any individual assets purchased does not exceed 5000/- then that assets shall be depreciated at the rate of 100%. Now my question is that whether these assets shall be depreciated at the rate of 100 % i.e assets used for less than 365 days shall be depreciated at the rate of 100% for the no of days for whcih the assets has been used or the assets shall be dpreciated fully in the year in which it has been purchased irrespective of the no. of days of use.
11 April 2009
The assets will be depreciated on the date of purchase itself irrespective of the number of days utilised if the value is less than Rs.5000 as per notes to schedule xiv
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