hi friends,
I have a querry. Under Company's Act 1956 what amount of asset has to be depreciated- Is it 100% of the asset or 95% (100%-5% scrap value of asset).
Do post your replies.
Regards
Kavisha.
CA.Kavisha.ICAI (Chartered Accountant) (54 Points)
08 May 2009hi friends,
I have a querry. Under Company's Act 1956 what amount of asset has to be depreciated- Is it 100% of the asset or 95% (100%-5% scrap value of asset).
Do post your replies.
Regards
Kavisha.
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 08 May 2009
the value of that asset sholud be Rs. 5000 or less.
Riyaz Khan
(CA CS (Exec) MBA (Fin) Asst. General Manager-SEBI Internal Auditor-British Certifications Inc.)
(1315 Points)
Replied 09 May 2009
Under Companies Act, 1956 it is provided that depreciation rate and method should be such that it wud write off the asset at least upto it 95 % Value.
It means 95 % of value of asset must be depreciated over the life of asset.
CA SUDIPTA SINHA
(Commerce Coaching- Accounts Cost FM)
(735 Points)
Replied 10 May 2009
as per Schedule XIV in case the cost of asset does not exceed Rs. 5000 the depreciation shall be provided @ 100%. otherwise Schedule XIV will be applicable.
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