abc pvt ltd purchased 10 phones for employees during the year and put it in office and equip under plant and machine category and charging dep on slm basis @ 10.34% on triple shift basis? is it correct rate or it should be 4.75% for phones and 10.34% on others plant and machineries
It depends on nature of business of the company. If it is a call centre working on 24 * 7 basis, then triple shift rate is correct. If it is into other business where use of telephone is general and not on 24 * 7 basis, then rate should be of single shift. However, telephones are low cost assets and depending on the policy consistently followed by the company, it can decide on charging 100% depreciation in the first year itself.
Karia Overseas
Ahmedabad
CA
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Shaswat initial support private limited
Ahmedabad
CS
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