15 April 2010
What is the maxium amount of depriciation that can be provided for in case of an asset exceeding Rs 5000/- value under SLM.
The statutory auditor of our company mentions that the max limit is 95%.We have been depriciating 100% till now. Pls help with reference to relevant section or excerpts.
15 April 2010
I believe your auditor is wrongly interpreting schedule XIV of companies act. It states:
8. Notwithst&ing anything mentioned in this Schedule depreciation on assets, whose actual cost does not exceed five thous& rupees, shall be provided depreciation at the rate of hundred per cent
It is nowhere given that assets having value more than 5000 are to be depreciated to the extent of 95% only.
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