Depreciation on Fixed Asset

This query is : Resolved

Arindam Roy (Querist)
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03 October 2008 Sir,
I want to compute depreciation as per companies act, Should I consider depreciable amount as (Historical cost + Additional Cost + Revaluation amount - Disposal - Impairment),
Is impairment of an asset is considered after charging depreciation or it is taken before depreciation calculation?
If Asset revalued then should I charged depreciation on the revalued amount proportionately?
Please suggest the right way.

PIYUSH JAIN

PIYUSH JAIN (Expert)
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03 October 2008 Under companies Act you can charge depre. on revalued amount but under IT act dep on revalued amount is not deductible.
Impairment can be done only in case of permanent change in value.

Arindam Roy

Arindam Roy (Querist)
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03 October 2008 Thank You.
I have actually facing problem that if asset have been revalued middle of the year then should I charge depreciation on revalued amount based on from the date of revaluation to the end of accounting period, or i will compute and charged depreciation on revalued amount for whole year?

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