(2) For the purpose of sub-section (1), depreciation shall be provided either - (a) to the extent specified in section 350; or (b) in respect of each item of depreciable asset, for such an amount as is arrived at by dividing ninety-five per cent of the original cost thereof to the company by the specified period in respect of such asset; or (c) on any other basis approved by the Central Government which has the effect of writing off by way of depreciation ninety-five per cent of the original cost to the company of each such depreciable asset on the expiry of the specified period
5% represents Scrap value.
Query 2: Ideally it should have scrap value atleast. if not, then you may consider bringing the scrap value of tose assets.