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SHIVANI MAHESHWARI (CA) (548 Points)

09 October 2011

what is rate of depreciation on comnputer software as per Companies act, 1956 (SLM &WDV) ????????????????

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7 Replies

sailesh mandani (Auditor) (351 Points)
Replied 09 October 2011

as per WDV it is 40%

as per SLM it is 16.21%

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Devendra (Chartered Accountant) (4775 Points)
Replied 09 October 2011

As per Companies Act 40%

As per Income Tax Act 60%

Regards,

Devendra K

Shaik ( M.com,IC(W)AI - Inter) (723 Points)
Replied 09 October 2011

Originally posted by : Devendra
	As per Companies Act 40% As per Income Tax Act 60% Regards, Devendra K

RAKESH (Almost CA) (2199 Points)
Replied 09 October 2011

Originally posted by : sailesh mandani
	as per WDV it is 40% as per SLM it is 16.21%

SHIVANI MAHESHWARI (CA) (548 Points)
Replied 10 October 2011

This rate is on computer not on computer software.

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sailesh mandani (Auditor) (351 Points)
Replied 10 October 2011

The Rate for Computer and Computer Software is Same

shanil jain (CHARTERED ACCOUTANCY) (60 Points)
Replied 10 October 2011

the dep rate on comp software is not mentioned in the Com Law..

it specifies only the data processing machines including Computers.

going by the sec 211(3C) of the Comp Act, the NAS's are to be followed, hence the NAS-26 Intagibles would be recognised and the approximation of its life and using SLM amortise the Intangible Asset software, giving a note of the useful life of the software as per the Management's view.