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Depreciation rates for fixed assets

vyjayanthimala (Accounts) (245 Points)

12 July 2012

Respected Sir,

I want to know is there any difference in depreciation rates between the company assets and firms assets

with regards

mala

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4 Replies

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 12 July 2012

What do you eman by firm assets. Do you want to say partneship Firm?

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vyjayanthimala (Accounts) (245 Points)
Replied 13 July 2012

Yes Sir

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 13 July 2012

Yes as per Companies Act, the depreciation rates on assets are prescribed in Schedule XIV of the companies Act, so they have to apply the depreciation rates as prescribed in this schedule.

For partnership firms the partnership Act does not prescribe any depreciation rates. So they have to apply the dpereciation rates as prescribed under the Income-Tax Act.

Also the Companies while calculating their taxable Income under the Income-Tax Act have to apply depreciation rates as prescribed under the I-T Act & not as per the Co's Act.

however for accounting purposes Co's can also adopt the depreciation rates as prescribed under the I-T Act if it wish to do say provided that the rates prescribed under the I-T Act for the particular asset is higher than the rate prescribed under Schedule XIV of the Co's Act.

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