hello everyone,
my client is company and liable for company audit, so my question is can we charge rate of depreciation as same as rate of last year audit report as per company act or each year different rate of tax will apply.
example last year depreciation on car charged with 31.10 so can we charge this year with same rate of depreciation.
Depends on the method being followed. If you follow SLM, you can depreciate the same amount as last year's. If WDV, the rate will remain the same and the amount will vary.
If Asset is bought/sold in the year, then proportionate depreciation to be provided for no. of days put to use.
CAclubindia
