21 January 2014
sir.. i want to know that whether it is mandatory for a private limited company to charge depreciation as per companies act,1956 in its books of accounts ?? and when i was seen the audited balance sheet for the F.Y 2012-13 on tax audited balance sheet, differed tax was not calculated and deprecation as per IT Act was carry to (Same amount as in B/S)in Books. whether it is correct ??? Plz Reply...
It is mandatory under the AS 6 to charge depreciation on fixed assets. Accounting standards are notified under the Companies Accounting Rules 2006 section 211 (3C) and therefore it is mandatory under the companies act. As per AS 6, depreciation is due to efflux of time as well and therefore even if asset is not in use, depreciation is mandatory.
21 January 2014
sir actually i want to know that whether deprecation under Compnies act manadtory or not??? as the comapny book as per Sec 32 of it act.
CAclubindia
