Asset head for lift/elevator

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Hardik Champaklal Kuriya (Querist)
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03 April 2012 Company has installed a Lift for his office building purpose, under which head lift is classified?
and the rate of Depreciation under companies act 1956?
can any one guide me.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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03 April 2012 Dear Hardik,

The lift/Elevator forms part of building and deprecition is charged accordingly on building.

Hardik Champaklal Kuriya

Hardik Champaklal Kuriya (Querist)
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03 April 2012 Thank U SIr,

But may i know any reference for the same to show my management.

Hardik Champaklal Kuriya

Hardik Champaklal Kuriya (Querist)
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03 April 2012 Dear Amitbhai,

One Day Agot Mr. C.A G Surnarayan had told that same is to be consider as Plant & MAchinery instead of office building , so still there is a consusion?

Can u please guide me?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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03 April 2012 Dear Hardik,

The lift forms part of the building itself. Further, it can not be removed without demolishing the building after installation
The useful life of the asset is same as that of building, hence the depreciaton rate will be same of building.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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03 April 2012 No, it is not possible to classify it under plant & Machinery.
Since it is not separable from the building, it need be depreciated @ of building.