I am going for auditing of a firm. the method of depn they folloe is WDV method. can anyone mention step be step procedure for computing depn.
Also indicate whether i should take less than 180 days / more than 180 days criteria while finalising accounts of the firm ( not during Tax Audit ).
Also give method of computing depn for deductions during the year.
Ravi S.
(Articles)
(294 Points)
Replied 27 November 2008
u can calculate less than 180 days only if the accounting policy states it follows tax depreciation method
CA Chaitanya
(PRACTISING CA)
(4283 Points)
Replied 27 November 2008
The partnership firm should calculate depreciation as per the Income tax act, 1961 and hence only WDV method should be folllowed and the concept of less than 180 days is applicable.
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