Respected All,
Can anyone tell me what is the rate of depreciation for Computer Software.
Thanks.
92 Replies
Priyanka
(Article Trainee)
(27 Points)
Replied 14 April 2008
Hi Nanju,
The Depreciation rates for computer software as per The Income Tax Act is 60% and as per the companies act 16.21% if the company is following Written down value method and 40% if the company is following Straight Line Method
Sathish Karunakaran
(ACA)
(614 Points)
Replied 15 April 2008
Income Tax Act - WDV Method - 60%
Companies Act - WDV - 40% & SLM - 16.21%
Monika Mulvanshi
(service)
(81 Points)
Replied 15 April 2008
Deprecaiation on computer software as per the provisions of Income tax Act is 60% .
As per Companies Act ,
a) if WDV method follows :- 16.21%
b) if SLm method follows : 40%
CA. Atindra A. Prabhu Bhatikar
(practising CA)
(68 Points)
Replied 16 April 2008
My friends, I feel the rate of 40% and 16.21 % WDV and SLM as prescribed under the Cos. Act are for hardware and AS-26 Intangible Assets will prevail for amortization of software. As per the said standard any intangible asset has to be w/o within a period of max 10 yrs; as per para 65 of AS-26, the rate of amortization has to less than even 10 yrs considering the tech obsolescense.
Kindly give ur feedback.
Megha S
(CA Student)
(64 Points)
Replied 21 April 2008
But as per AS-26, we should follow only SLM method and not WDV.
is it?
Nagaraju Pogula
(Partner)
(175 Points)
Replied 30 April 2008
40% is the depreciation rate for Trade Mark.
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