Depreciation Accounting
This query is : Resolved
Guest
Guest
(Querist)
10 July 2011
Please suggest on how depreciation will be charged in following situation as per the Co.Act and IT Act
Date of Purchase of Plant and Machinery: 15th Sept 201X
Price paid to vendor on account of Purchase of P&M: Rs. 150,000/-
Date of Installation: 8th Oct 201X
Price Paid for Installation of P&M : Rs. 15,000/-
As per my understanding depreciation as per Co Act shld be
Depreciation :
150000*(31st march-15th Sept)/365*Rate of Dep
(+)
15000*(31st March-8th Oct)/365*Rate of Dep
Please correct me if i am wrong...
Thanks
Date of Purchase of Plant and Machinery: 15th Sept 201X
Price paid to vendor on account of Purchase of P&M: Rs. 150,000/-
Date of Installation: 8th Oct 201X
Price Paid for Installation of P&M : Rs. 15,000/-
As per my understanding depreciation as per Co Act shld be
Depreciation :
150000*(31st march-15th Sept)/365*Rate of Dep
(+)
15000*(31st March-8th Oct)/365*Rate of Dep
Please correct me if i am wrong...
Thanks
Guest
Guest
(Querist)
10 July 2011
Waiting for the suggestions of the experts...
11 July 2011
You need to take depreciation on 150000+15000 from date of instillation (assuming the same as date of put to use)
11 July 2011
Depreciation should be considered only from the date put to use ( Commercial production) for the total value)
11 July 2011
As per the companies act the depreciation is to be charged on per day basis and it depends whether you are following SLM or WDV Method.
As per Income Tax Act it is less then 180 day half depreciation more than 180 days of user is full deprecaiton
As per Income Tax Act it is less then 180 day half depreciation more than 180 days of user is full deprecaiton
13 July 2011
you ar erequired to charge the dep. from the date of installation as per compnies act.
i.e. on Rs 150000+15000 and as per days basis, wrt slm or wdv u r following !
keep it up !
i.e. on Rs 150000+15000 and as per days basis, wrt slm or wdv u r following !
keep it up !
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