Sravanthi (CA Final ICWA Final & M.B.A) (737 Points)
25 July 2012Hai frnds
I am sravanthi. I have a small doubt regarding Depreciation. Is Proprietory Concern necessary to prepare depreciation statement? If yes what are d rates? if d ans is no what is the reason? Pls frnds help me. Its very urgent to me.
Thanks in Advance
Sreeniketh Angara
(B. Com CA PCC CS Executive)
(699 Points)
Replied 25 July 2012
Hi Sravanthi,
Any Concern that has fixed assets has to provide Depreciation. If you don't have the rates at which the deporeciation is provided... Then the depreciaton can be provided over the period of life of the asset.
Hope this clears. In case any further doubts, do not hesitate to contact me.
God Bless,
Sreeniketh
Yajendra Adhikari
(Chartered Accountant)
(334 Points)
Replied 25 July 2012
You have to charge depreciation, when you are maintaining books of accounts. It is not required to prepare the separate statement for calculation of Depreciation. There is not any specified rate for propietory concerns. But You can follow the Income Tax Rates, as is followed by almost all propietory concerns. If you foloow income tax rates, you will not be required to calculate depreciation separately for Income Tax purpose.
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