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Whether UPS is a part of the Computer System.

Nilesh Shah 
on 11 April 2008


Nilesh Shah Writes:
Cell: 92246-59941
E mail:

Whether UPS (Uninterrupted Power Supply) is a part of Computer System
entitled to depreciation @ 60%

The expression 'Computer' has not been defined in the Act. However,
it has been defined by Sec 2(1)(i) of the Information Technology Act,
2000. As per the said Act, 'computer' means any electronic, magnetic,
optical or other high speed data processing device or system which
performs logical, arithmetic & memory functions by manipulation of
electronic or magnetic or optical impulses & include all input-output
processing, storage, computer software or communication facilities
which are connected or related in a computer system or computer
network. There is no in built system of power supply in the computer.
The UPS keeps the computer running for several minutes after a power
outage & thus saves data & shuts down the computer gracefully. Thus
the UPS only supplies power & it regulates the flow & thereby
protects the data & the sensitive equipment. It is only an
alternative power supply & applying the functional test it is a part
of the power system & not the computer system. A UPS is not an
integral part of the computer as a battery in a laptop is. A computer
system can function without UPS & even a UPS can be used to ensure
uninterrupted power supply to other electronic equipment, other than
a computer. A printer & a scanner are output device & thus are
integral part of the computer as stated in the definition above.
Therefore deprecitation at the enhanced rate of 60% cannot be claimed
on UPS. It is a part of the plant & machinery.


Your's Sincerely,

Nilesh Shah


Category Income Tax
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