Depreciation on Mobile



Anybody plz  tell me that hw cud treat mobile phone for the purpose of Depreciation under Income Tax Act & Also Under Co. Act

 
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CA Final

It should be considered as Office Equipments for IT Act and Companies Act.
 
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professional

Ya it should treated under office equipment.

 
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Learner

Dear Gautam,

Under Companies Act assets costing upto Rs. 5,000 may charged to profit & loss A/c in the first year

If it exceeds Rs. 5,000 then It should be capitalised under Plant & Machinery - General @ 13.91% (WDV)

Whereas no such facility is available under Income Tax Act - i:e It has o be capitalised - Head "Plan & Machinery - General" @ 15%

Needless to say Cost shall also include cost of "First Recharge Voucher, First Insurance, etc", being an expenditure necessary for making the asset ready for use.

 
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Still Learning

office equipments

 
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Accountant Internal Audit

Mobile phones are treated as plant and machinery, and are entitled to depreciation at the rate of 15 per cent.


 
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Tax Advocate (Consultant) I.T and Documentation of Properties

Yes, mobile phones are to be treated under the category "plant and machinery" and are entitled for deprciation @ 15%  under The Income Tax Act

 
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