Hello Friends,
We know that by virtue of Explanation provided in Sec 32 of Income tax act, Depreciation is mandatory whether or not the same is considered in arriving at the Total income.
However my question is, is it mandatory on the part of the company, to charge depreciation in the books of accounts as per Companies act 2013. Inference to provisions 123 of CA,2013 tells that, depreciation shall be deducted as provided in Sch II, when the company intends to declare dividend. What if my company doesnot want to declare dividend. Should I still charge depreciation in my books of accounts?? (i mean debit to P&L a/c)?
1) i haven't charged depreciation from 2010-2014. 2) i dont want to charge dep even for 14-15 and even from 15-16. 3) i want to charge dep only from 16-17 when my profits break even. so in the above context, is it compulsory for me to charge dep.?? or attleast from FY 14-15 onwards shall i charge dep?
please tell me in the context of companies act..
