I have a query regarding the depreciation rates as per Companies Act 2013 as follows.
1. Under the heading Plant & Machinery point b(VI)there is no specific rate mentioned for Solar power plant. So which rates should be considered?
2. If we consider the rate mentioned in point a(i) other than continuous process plant it is 6.33% and plant life assumed is 15 yrs whereas the actual life of solar power plant in 25 yrs.
3. The plant life assumed by the Companies Act 2013 is different from the actual life given by manufacturer as given below.
a. Solar - As per Co. Act: 15 yrs As per Mfg : 25 yrs
b. Wind - As per Co. Act : 22 yrs As per Mfg : 20 yrs
c. Hydro - As per Co. Act : 40 yrs As per Mfg : 35 yrs
So can we consider the depreciation rates as per the Companies Act 2013 given the difference in the plant life?
27 September 2014
as per new act depreciation on FA will be based on useful life. so i believe you need to consider acceptable useful file for depreciation purpose
CAclubindia
