Builder selling electricity through solar panels
This query is : Resolved
Rakesh Bandal
(Querist)
05 January 2018
Respected Sir / Madam
A Builder engaged in the business of construction of residential complex after completing the building assessee has installed Solar panel and sales electricity generated to MSEDCL
What is the nature of transaction and changeability of tax for electricity generation activity
is additional depreciation can be claimed by assessee for generation activity, if additional depreciation can be claimed then what will be the rate of normal depreciation
A Builder engaged in the business of construction of residential complex after completing the building assessee has installed Solar panel and sales electricity generated to MSEDCL
What is the nature of transaction and changeability of tax for electricity generation activity
is additional depreciation can be claimed by assessee for generation activity, if additional depreciation can be claimed then what will be the rate of normal depreciation
CA R SEETHARAMAN
(Expert)
05 January 2018
GST not applicable on sale of electricity. 80% depreciation can be claimed in the first year of installation.
Rakesh Bandal
(Querist)
05 January 2018
Sir what about Additional depreciation
CA R SEETHARAMAN
(Expert)
05 January 2018
Yes additional depreciation can also be claimed and make it 100% depreciation in case of assets used for more than 180 days.
Rakesh Bandal
(Querist)
06 January 2018
Sir
1. as per amendment in section 32 by finance Act 2016 maximum depreciation can be claimed is 40%
2. but for Charging depreciation for Generation and distribution of power rate of depreciation is different
3. as additional depreciation can be claimed (because as per amendment production of electricity is also considered as manufacturing a thing) then rate of normal depreciation should not be 80% or 40% it should be as per Appendix IA of the section 32
sir please solve my doubt
1. as per amendment in section 32 by finance Act 2016 maximum depreciation can be claimed is 40%
2. but for Charging depreciation for Generation and distribution of power rate of depreciation is different
3. as additional depreciation can be claimed (because as per amendment production of electricity is also considered as manufacturing a thing) then rate of normal depreciation should not be 80% or 40% it should be as per Appendix IA of the section 32
sir please solve my doubt
CA R SEETHARAMAN
(Expert)
06 January 2018
See the link.
https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.energetica-india.net/download.php%3Fseccion%3Darticles%26archivo%3DOaz68bDAqQ1GbjXRx9gXtdaKNnQRvBtbh6X00YoOOupxH7kEc8x6W8.pdf&ved=0ahUKEwjm5-yM6cLYAhWFOI8KHf43A0YQFggkMAA&usg=AOvVaw03Iy14EVFbbq6GQqy2lgXn
https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.energetica-india.net/download.php%3Fseccion%3Darticles%26archivo%3DOaz68bDAqQ1GbjXRx9gXtdaKNnQRvBtbh6X00YoOOupxH7kEc8x6W8.pdf&ved=0ahUKEwjm5-yM6cLYAhWFOI8KHf43A0YQFggkMAA&usg=AOvVaw03Iy14EVFbbq6GQqy2lgXn
CA R SEETHARAMAN
(Expert)
06 January 2018
Agreed with you only 40% depreciation can be claimed.
See the link.
https://www.google.co.in/amp/wap.business-standard.com/article-amp/pti-stories/solar-power-tariffs-may-rise-as-depreciation-benefit-capped-116022901043_1.html
See the link.
https://www.google.co.in/amp/wap.business-standard.com/article-amp/pti-stories/solar-power-tariffs-may-rise-as-depreciation-benefit-capped-116022901043_1.html
Rakesh Bandal
(Querist)
08 January 2018
Sir thanks for sharing valuable information
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