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Query Details

Asked by rakesh on :Aug. 04, 2018

Can a company charge a depreciation at a ra…

Can a company charge a depreciation at a rate lower than prescribed by the company act?

Can a company charge a depreciation at a rate lower than prescribed by the company act?

0

Jeeba Aug. 04, 2018

A company can opt for the different rate prescribed by the Companies Act based on technical estimation or otherwise allowed under Section 205 of the Act.

The rates as contained in Schedule XIV are minimum rates and therefore a company cannot provide a lower rate of depreciation than prescribed by Schedule XIV of the Companies Act, 1956.

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