Depreciation

This query is : Resolved

CA Aditya Shah (Querist)
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27 September 2014 Dear all, The new rates of depreciation as per Sch 2 of Companies Act 2013 is applicable for FY 2013-14 or not?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 September 2014 No its not. Its applicable from Financial Year 2014-15. See General Circular 08/2014 from below link--

http://www.mca.gov.in/Ministry/pdf/General_Circular_8_2014.pdf

CA Aditya Shah

CA Aditya Shah (Querist)
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27 September 2014 Sir,
what to do in this regard if accounts already prepared as per new schedule and sent to shareholders?

ROI not yet filed & AGM not yet held.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 September 2014 What was Auditor doing then?
You may continue with this accounts there should not be any issue.

CA Aditya Shah

CA Aditya Shah (Querist)
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27 September 2014 I think sir the auditor might have been been confused in this regard. Therefore it was decided to adopt new rates.

What should we do now?

Is there any problem if different rates are charged not according to Companies Act 1956?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 September 2014 There should not have been any confusion since the circular was issued very early i.e., 4th April 2014.
There should not be any problem if rates as per Companies Act 2013 are adopted.