TAX DOUBT

CA ADITYA ZANTYE (BCOM CA CS PROFESSIONAL)   (325 Points)

28 April 2011  

 

The written down value of plant and machinery in the books of A ltd is 75,00,000 as on 1st april 2008,on which date,the installed capacity was 12000 tons.A ltd borrowed rs 10,00,000 @ 10%p.a from ICICI bank on 1.8.08 for purchase of new plant and machinery for extension of its existing business,which would increase its installed capacity to 13000 tons.The new plant and mac was purchased on the same date but was put to use only w.e.f 1.11.08 Compute the depreciation admissible u/s 32 for the A.Y 2009-10,assuming the applicable rate of depreciation on plant and machinery to be 15%

please solve the above question