dear sir,
when i preparing P/L account for the private ltd company the depreciation calculation taken by income tax or companies act ? and also deferred tax assest/ liability calculation explain breifly.
SHASHANK AGARWAL
(self employed)
(114 Points)
Replied 04 March 2014
Take depn as per Companies Act in the P/L A/c.
https://knowyourtaxation.blogspot.in/
KRISHNAPRASAD IYER
(B.Com , CA Final)
(657 Points)
Replied 04 March 2014
The Companies Act provides the % of minimum depreciation. There is no rule that we should adopt the rates specified in the Act in P&L a/c. You can adopt any rate which is higher than that specified in companies act.
However, while preparing the income tax computation, the rates specified as per the Income Tax act must be taken as any amount which is greater than that specified in this Act will be disallowed.