We calculate Two depreciations. 1. Tax Depreciation 2. Book Depreciation.
Book Depreciation is actually accounted in the books.
My question is Why we should again add book depreciation to profit and deduct Tax Depreciation in the computatuion Sheet?
Secondly if that is so, Why we are not directly book the Tax depreciation itself?
Hope I am clear.
We cannot book tax depreciation because it is only a calculation for claiming depreciation under IT act. So we add book deprection to profit and claim the I.T deprection . I.T. depreciation is different from book depreciation. For example some fixed assets depreciation can be claimed at 100% or 50% as the case may be. It is calcuated in Computation of Taxable income statement accordingly. The assessing officer may disallow or allow if he thinks the depreciation is incorrect or correct. If you book the tax depreciation in books is it possible to reverse the entry after finalising a Balance sheet if it is published in annual report. So we are maintaining two types of depreciation. Like the same we used to add March salary paid april. and claim it if it is allowable.
Kindly provide us Excise Notification of abatement on MRP products.
Kindly provide us Excise notification of changed in excise duty 10% to 8% on 24th Feb, 09
dear friends please send me the link which there were so many e-books and notes and books related to finance and accounts they were seven links. please send it asap regards, hitendra singh
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