Ch.Naga Srinivasa Rao (Assistant Manager -Finance and Accounts) (45 Points)
22 October 2020Hi ,
We have purchased Four Wheelers for our office purpose. We are not using this Four wheeler for operating travels. Please advise what is the life time of vehicle and Depreciation rate under SLM method.
Thanking you,
Srinivas.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 22 October 2020
Depreciation rate 15.83% and life is 6 years
Ch.Naga Srinivasa Rao
(Assistant Manager -Finance and Accounts)
(45 Points)
Replied 24 October 2020
Hi,
One more clarification, purchase of mobile for business purpose. What is the life time of mobile for calculating depreciation
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 24 October 2020
Communication devices used for supervision of business, it’s 40%. Useful life is not available.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 24 October 2020
as per this article it is classified as PPE or other class assets. If I was treating it, I’ll include into the carrying amount and use the accounting treatment of replacement parts with nil scrap value. Ie derecognise the mobile value after its useful life and upload new mobile value. I’m sure you have other methods cooked up.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 24 October 2020
I found the answer, it’s called end user devices where useful life is 3 years and depreciation is 31.67% SLM & 63.16% WDV. https://www.taxadda.com/depreciation-rates-as-per-companies-act-2013/
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