Six Indian requirements that touch every fixed asset, each mapped to what the platform records and produces. Further down: how that compares with a spreadsheet register or an ERP asset module.
Depreciation over the useful lives indicated in Schedule II (or a different life the company justifies and discloses), with residual value, pro-rata for additions and disposals, and disclosure of method.
Useful lives and residual values are set per asset class once; SLM or WDV computed monthly; additions and disposals pro-rated automatically; a Schedule II-wise depreciation statement exports to Excel.
WDV depreciation on blocks at prescribed rates, half-year rule for assets used under 180 days, block adjustments on sale.
A second tax book runs alongside the Companies Act book. Each asset maps to a block; 180-day rule applied from the put-to-use date; block-wise WDV statement ready for the tax audit.
Significant parts of an asset with different useful lives depreciated separately; where the revaluation model is used, revaluations carried with their history. (Impairment is assessed under Ind AS 36 and is recorded by your finance team.)
Parent and component assets with independent useful lives and depreciation; revaluation entries with history on each asset.
The auditor must report whether the company maintains proper records showing full particulars, whether assets were physically verified at reasonable intervals, and whether discrepancies were properly dealt with.
Verification cycles with every scan logged by time and user, asset photos on the register; a variance register showing how each discrepancy was resolved; a CARO-format report with the supporting evidence your auditor will ask for. Photo and location capture on every scan is coming next.
ITC claimed on capital goods must be tracked; on disposal, the higher of ITC reversal or tax on transaction value applies.
GST and the ITC claimed are recorded with the purchase invoice, so the figure your tax team needs is on the asset record when it is sold or scrapped.
Who holds each asset, where, since when, and every change in between.
Custodian and location on every asset; handovers are acknowledged by the receiving custodian; every edit is logged with user, time and before/after values and cannot be deleted.
FIX-TAG keeps the records and produces the statements and reports. Depreciation policy, rates and the audit opinion remain with your finance team and statutory auditors.
Both hold the accounting entry. Neither knows whether the asset exists, where it is or who has it. That gap is what gets qualified.
| Need | Spreadsheet register | ERP fixed asset module | SBC FIX-TAG |
|---|---|---|---|
| Physical tag on every asset | No | Not included; separate project | Yes, fixed by our team |
| Verification with scan evidence | Printed list, manual tick | Rarely; usually manual | Scan log with time and user; asset photo on record |
| Companies Act and Income Tax books | Two sheets, drift apart | Often one book; tax done outside | Both, on every asset, monthly |
| CARO 2020 clause 3(i) report | Assembled by hand | Not standard | Generated from verification data |
| Chain of custody and transfers | Email and memory | Journal entries only | Custodian acceptance, audit trail |
| Register clean-up and migration | You | Implementation partner, extra scope | Included in the first engagement |
| People on your premises | No | No | Yes, tagging and verification teams |
FIX-TAG works alongside your ERP: depreciation and capitalisation export in the ERP's own format, so there is no double entry.