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Depreciation calculation

Others 4877 views 3 replies

Pawan Kumar

audit manager

118 Points Posted on 05 November 2011

hey all

can anyone help me to know.....how to calculate depreciation of companies while making provisional balance sheet for the half year?

as i think depreciation should be calculated on the basis of days as per companies act (i.e. upto 30th september)

and depreciation as per income tax act shall be calculated for the half year on the basis of days.

is that correct? if not please correct me...

thanks in advance

Replies (3)

Surendra Agarwal

MANAGER FINANCE AND BUSINESS PLANNIN

289 Points Posted on 05 November 2011

Depriciation as per co act is to be calculated on day basis as per rates specified in schedule 14 and as per income tax for half year if asset ready to put to use. .

Giridhar S Karandikar

Team Lead

7558 Points Posted on 08 November 2011

Depreciation as per Co Act shuold be calculated on day basis as per the rates specified in schedule XIII & depr as per IT Act should be calculated @ half the rate of the applicable rate to tha asset if it is put to use of less than 180 days during the previous year.

Giridhar