Depreciation

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2015 Dear all
plz let me know the Depreciation rate on building

shubham shukla

shubham shukla (Expert)
Follow

13 March 2015
I-RATE OF DEPRECIATION ON BUILDINGS UNDER COMPANIES ACT:-

(a)Buildings(Other than factory Buildings) [NSED]:- W.D.V.-5% & S.L.M.-1.63%

(b)FACTORY BUILDING:-W.D.V.-10% & S.L.M-3.34%

(c)Purely Temporary Erections such as wooden structures.W.D.V.-100% & S.L.M.-100%

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2015 Dear Shubham sir
i couldn't understand your (c) option please tell me it in details and also tell me the difference between the WDV and SLM. which one of them has to be used in company depreciation.....

Upgrade to CAclubindia Pro. Subscribe Now!

shubham shukla

shubham shukla (Expert)
Follow

13 March 2015 (C) it means if any building, which is temporary made of wooden structure then depreciation will be deducted @100%.

& difference between W.D.V. & S.L.M

As per straight line method(S.L.M.), we calculate the depreciation with a fixed rate. Every year same depreciation is deducted from the fixed asset.

As per written down value method(W.D.V., we calculate the depreciation on original cost in first year. Next years' depreciation will be calculated on the amount which we got after deducting previous year depreciation. So, every year's depreciation amount will decrease.

shubham shukla

shubham shukla (Expert)
Follow

13 March 2015 you can chose any one method of them but mostly companies prefer straight line method.