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Depreciation

vgshankar_vinayak ( CA Final) (35 Points)

17 September 2009

hi guys,

can any one clarify me, is there any statutory provision stating that Fixed assets should not be depreciated beyond 95%???

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7 Replies

CA Anil Kumar .S (Finance Manager) (219 Points)
Replied 17 September 2009

u can depreciate till asset value becomes 1 re

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vgshankar_vinayak ( CA Final) (35 Points)
Replied 17 September 2009

r u sure

CA Sumit Arora (CA) (1411 Points)
Replied 17 September 2009

No There is no provision like this.

vgshankar_vinayak ( CA Final) (35 Points)
Replied 17 September 2009

plz clarify me if there is any provision UNDER ANY ACT stating the same

CA Anil Kumar .S (Finance Manager) (219 Points)
Replied 17 September 2009

min amount of the asset which can be show in the balance sheet is 1 re

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Pratik More (CA FINAL CS ICWAI AMFI IRDA CGM M.COM ALL NCFM CRTFCT CPM CPA.) (604 Points)
Replied 17 September 2009

A ASSETS WHICH ARE SPECIALLY USES IN MINES, GAS & FUEL, CABONIC ITEMS, AGRICULTURE PURPOSES, DRILLING, CUBBING, SHAPING, EXPLORATION ETC ARE NOT TO BE DEPRECIATED BEYOND 95%, BCOZ THROUGH THIS ASSETS UR BUSINESS IS CARRING NA, IF U DONT INVOLVE ALL HIS ASSETS INTO UR BUSINESS U CANT DO ANYTHING & ABOVE ALL THE DEP IS INDIRECTLY PROVIDED ON ALL SUCH ASSETS AT THE TIME OF CAL CLEAR PROFIT. IN NORMAL TRADING BUS U CAN PROVIDE DEP UPTO THE VALUE IS NOT GNG TO ITS AMT TO RS 1.