Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Depreciation on CC TV

MITEN SHAH (SELF OCCUPIED) (47 Points)

08 September 2015

We have installed C C TV Cameras in our factory & office premises in April'2014.
It is attached to our CEO's Computer as well as with TV in monitoring room.

My query is how much depreciation is allowed on C C TV System for A.Y. 2015-16?

Is it 15% or 60% ?

Please share expert advise.

Reply
Follow
Share

11 Replies

S. Shiroor (Others) (1207 Points)
Replied 08 September 2015

1) Storage space , monitor , System can be taken in Computers i.e 60%

2) Cables and the cameras have to be taken in 15%

1 Like

MITEN SHAH (SELF OCCUPIED) (47 Points)
Replied 08 September 2015

The party has given us the billing for total C C TV syatem. No seperate cost shown in billing. Please advise.

S. Shiroor (Others) (1207 Points)
Replied 08 September 2015

See if he can give seperate Bills for System, Monitor, mouse, Keyboard and the storage space. If the invoice consists of seperate items then write that way in account books.

Rashi Bajaj (CA) (752 Points)
Replied 08 September 2015

CC TV system is not a Plant & Machinery. As I understand, you have purchased only CC TV system. Not computer. Only computers are depreciable at 60%. All other assets you've stated will be considered as office equipments and rate of 10% will be applicable. CC TV is an office equipment or electrical installation. So that goes under the head "furnitur and fittings" as per definition. Dep rate is 10%.

Jolly (student) (41 Points)
Replied 08 September 2015

I agree with Rashi Bajaj.... C C TV is our office environment then it should be treated as furniture and depreciated @ 10%

Manish Mehta (Manger) (115 Points)
Replied 08 September 2015

This is machinery and eligible for deduction @ 15%

S. Shiroor (Others) (1207 Points)
Replied 08 September 2015

CCTV comes under Computerised security systems. There are many computers used for just letter typing that does not mean that computer should be taken in the office equipment. CCTV has lot of advance techniques like creating image of person captured in night vision . It has lots of functions similar/analogous to Computer.