please clear the query we purchased An Air Conditioner in fy 2016-17, now what depreciation rate charged as per income tax law ?
If A.c. is used office it will be treated as furniture depreciable at 10 percent. if the A.C. is used for manufacturing or production or preservation of goods it will qualify as plant and machinery to be depreciated at 15 percent
CAN YOU GIVE ME SOURCE OF THIS OPINION AS ON INCOME TAX SIDE WE DONT SEE SUCH BIFURCATION.
| Originally posted by : Poltu Ghosh | ||
| If A.c. is used office it will be treated as furniture depreciable at 10 percent. if the A.C. is used for manufacturing or production or preservation of goods it will qualify as plant and machinery to be depreciated at 15 percent | |
Yes, I agree. Depreciation rate on AC depends on its usage. If AC is being used in Office and is not involved indirectly or directly in production process, it shall be considered as Office equipment and 10% depreciation will charged p.a.
Else, it shall be a Plant & Machinery and depreciation would be charged at 15% pa
| Originally posted by : Kartikey Jain | ||
| ||
Originally posted by : Poltu Ghosh
If A.c. is used office it will be treated as furniture depreciable at 10 percent. if the A.C. is used for manufacturing or production or preservation of goods it will qualify as plant and machinery to be depreciated at 15 percent
Yes, I agree. Depreciation rate on AC depends on its usage. If AC is being used in Office and is not involved indirectly or directly in production process, it shall be considered as Office equipment and 10% depreciation will charged p.a.
Else, it shall be a Plant & Machinery and depreciation would be charged at 15% pa
Sir can you please tell me that whether the ACs being used in restaurants, bars and product manufacturing factories(such as musical instrument companies) are considered as commercial or not? Are ACs related to the production process in such places? If yes, can it depreciate their value?
