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    Question

    Under Companies Act, 2013, what determines the rate of

    depreciation for assets in books of accounts?
    A Income Tax Act schedule Correct Answer Incorrect Answer
    B MCA prescribed useful life schedule Correct Answer Incorrect Answer
    C Auditor’s recommendation Correct Answer Incorrect Answer
    D RBI guidelines Correct Answer Incorrect Answer
    E Shareholder’s approval Correct Answer Incorrect Answer

    Solution

    As per Schedule II of Companies Act, 2013, useful life of assets is prescribed. Depreciation is calculated accordingly unless the company justifies a different useful life.

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