Depreciation as per companies act 2013 measures the wearing out or loss of value of a depreciable asset from use or obsolescence. Depreciation on assets can be claimed as an expense in the Profit and Loss A/c of a business.
Depreciation as per Companies Act, 2013 is applicable for assets purchased on or after 1st April 2014. It only prescribes the useful life of different assets and does not provide any specific depreciation rates.
You can use the depreciation formula and the useful life given in Schedule II of Companies Act, 2013 to calculate the rate of depreciation as per companies act. Besides, we have calculated and given the mca depreciation rates under Depreciation Rates as per companies act 2013 for AY 2023-24.
In this article, we will delve into the intricacies of depreciation as per Companies Act 2013, unraveling its significance and implications.