depriciation
This query is : Resolved
04 July 2007
my client,s business is related to software and they do follow a wdv method of depriciation...
if i calculate depriciation at 40% as per companoes act for computers and software the asset value is negative...
is it put as a scrap or what am i to do...
if i calculate depriciation at 40% as per companoes act for computers and software the asset value is negative...
is it put as a scrap or what am i to do...
04 July 2007
I am surprised. If you get an answer plz let me know
04 July 2007
Hi,
If one calculate depreciation under the Written Down Value(WDV) Method, irrespective of rate of depreciation, the asset value(i.e. Net Block) can not be negative. At best the Net Block will get reduced to zero. The question of scraping etc. of the assets does not arise in this case.
The depreciation rate is to be applied on the amount of Net Block as on the beginning of the year, subject how ever to addition/delation of assets during the year.
You are requested to re check your calculation.
If one calculate depreciation under the Written Down Value(WDV) Method, irrespective of rate of depreciation, the asset value(i.e. Net Block) can not be negative. At best the Net Block will get reduced to zero. The question of scraping etc. of the assets does not arise in this case.
The depreciation rate is to be applied on the amount of Net Block as on the beginning of the year, subject how ever to addition/delation of assets during the year.
You are requested to re check your calculation.
04 July 2007
Hope, the question stands resolved.
04 July 2007
You need to recheck the calcluation.......bcoz it can never in negative
04 August 2012
yes you can folow recheck once the calculation
04 August 2012
yes you can folow recheck once the calculation
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Long term Capital gains received on sale of Residential Plot of land 10 years after buying it
- RCM INVOICING FROM NOV-2024
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
