13 May 2012
One of the Company is writting off its assets fully. i.e If an asset is of Rs. 100/- and applicable dep. rate on slm basis is 5%, then in 20 years it will writte of the entire assets. At the end of 20 years, asset will be off zero value, but it would be existing physically.
My query is, whether treatment done by company is correct.?
Is it MANDATORY for a company written off an asset to only 95% of its value, or company at its discreation can writte off fully.
13 May 2012
as per companies act maximum 95% can be written off,(except in case of assets below 5000) But as per Income tax act you can write off fully..
Regards: CA Piyush
Querist :
Anonymous
Querist :
Anonymous
(Querist)
13 May 2012
Thanks Piyush, but can you refer me that particular section
CAclubindia
