Shift depreciation and internal controls
Susan Shakya (13 Points)
04 March 2017Susan Shakya (13 Points)
04 March 2017
CA Amrita Chattopadhyay
(Audit & Assurance)
(13459 Points)
Replied 23 March 2017
For the purpose of charging of depreciation, you can follow the method prescribed in the Companies Act, 2013 (based on the number of years) or Income Tax Act 1961 (based on the percentage). If as per the policy of the company and for the internal purpose you choose to calculate depreciation based on the hours run by the machinery, then you can take help of excel sheet or some customized program attached with the machinery to record the number of hours
If other software are attached to the machine, they shall not be part of the machine and shall be considered separately.
The machine shall not include the computers attached with machine. For the purpose of depreciation, both has to be considered separately. Thus, the working hours shall be calculated separately
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