Depreciation - GST Registration, GST cancellation, GST Return Filing

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Depreciation

Depreciation under IT Act & Company Act


          Particulars
Income Tax
                      Company  Act
% WDV
Useful Life (years)
% WDV
%SLM
Computer
60%
3
63.16%
31.67%
Plant & Machinery
15%
15
18.10%
6.33%
Furniture & Fixture
10%
10
25.89%
9.50%
Office Equipment

5
45.07%
19%
Cars & Vehicles
15%
10
25.89%
9.50%
Cars & Vehicles used on hire
30%
6
39.30%
15.83%
Building- Non Residential
10%
30
9.50%
3.17%
Building – Residential
5%
30
9.50%
3.17%
Patent, Copyright, trademark, software
25%




Notes
  • Building include roads, bridge, wells & tube wells
  • If building used more than two third in residential purpose it treated as residential building
  • In Income tax act after 6 month whole year depreciation charged and for less than 6 month property half year depreciation charged
  • In company Act depreciation charged per day base
  • Deferred tax Assets= Company Act Depreciation – Income tax Act x tax/100
  • After sale of assets reversal of deferred tax entry done
  • Assets < Rs.5000/- shall be provided depreciation @ 100% (In company Act)

Block of Assets

Same category assets which rate of depreciation is same are one block of assets. If any sale and purchase done the cost include or reduce in total value of block of assets. If block of assets is zero but assets not zero than one note given that assets remain balance. If sale of assets and extra amount received this is treated to short term capital gain.

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