priyanka (ca final(old)) (48 Points)
15 April 20111. if a asset of5000 or less can be depreciated at normal percentage according to rates of companies act or do we have to compulsorily write off at 100%???
2. and also if two or more assets are purchased at same time of same nature whose individual value is less than5000 but whose aggregate is more than 5000 then do we need to write them off individually at 100% or can we apply normal rate???/
CA Sandeep Kumar
(Audit Assistant)
(804 Points)
Replied 15 April 2011
Compulsory - i.e 100 % rate. If cost is less than Rs 5000/-
If individual cost of an asset is less than Rs 5000/- even if aggregate exceeds Rs 5000/- provide depreciation at 100 %.
Plant & Machinery
If aggregate value of 2/more assets individually though less than Rs 5000/- but in aggregate more than 10 % of value of P &M, then normal rate as given in schedule XIV is to appplied.
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