10 April 2009
Step 1 : Refer Schedule xiv of the Companies act. There you will find the rates as per wdv and straight line method and the type of assets.
Step 2 : Find out the asset of your company falls under which category as per that schedule.
Step 3 : Discuss with your management whether they want to provide on wdv or staright line method.
Step 4: As per companies act you have to charge depreciation only for the usage period ie purhase date to closing of finacial year for new assets. For exisitng assets for full year and for sold assets from the beging of financial year to the date of sale.
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