Please tell me if depreciation on fixed assets is claimed at a lower rate. Is there any compulsion for a firm to charge depreciation on the prescribed rates?
12 April 2010
If it is a company, then u have to charge depreciation as per WDV method or Straight Line Method at the rate specified in the schedule XIV of Co.Act.
As per Income tax Act, there is seperate rate mention in the Act. However u have to follow compulsorily WDV method here.
For a firm, you have to charge dep. as per IT Act.
12 April 2010
for a firm income tax rate is applicable. You can't charge lower depreciation. in calculation it is assumed that you charged full rate of depreciation and value of asset will be calculated according to rate specified in act.
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