Depreciation rate

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Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2012 What is the depreciation rates for the moulds and dies used for manufacturing of medical equipments as per companies act?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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04 August 2012 As per Para 9 of AS 6-
Any addition or extension to an existing assetwhich is of a capital nature and which becomes an integral part of the existing asset is depreciated over the remaining useful life of that asset. As a practical measure, however, depreciation is sometimes provided on such addition or extension at the rate which is applied to an existing asset.Any addition or extension which retains a separate identity and is capable of being used after the existing asset is disposed of, is depreciated independently on the basis of an estimate of its own useful life.
Accoringly, In my opinion, the moulds & dies become integral parts of the equipment and have same useful life that of equipments. Depreciation will be provided at the same rate which is applicable to equipments

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