Classification of assets

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This query is : Resolved

CA Monica Patel (Querist)

30 September 2012 respected sir my qerry is -
presently company has open new resort buying following assets, please give me a suggestion about in which head i bifurcate the same?

1. purchase of bed sheet, cotton sheet, metrics, cushion cover, container, carpet.

please inform me, thank you

Amol S Joglekar

Amol S Joglekar (Expert)

30 September 2012 plant and machinery is better head for all such items instead of furniture.

CA Monica Patel

CA Monica Patel (Querist)

30 September 2012 sir, whether restaurant building can be treated as plant for income tax purpose

Amol S Joglekar

Amol S Joglekar (Expert)

30 September 2012 It is a subjective factor. RESORT versus RESTAURANT. You need to take a call accordingly. Restaurant has major thrust on food where as RESORT on LODGING.

CA Monica Patel

CA Monica Patel (Querist)

01 October 2012 Respected sir, thank you for giving me a reply, Company have resort. please clarified the same that building can be plant for income tax purpose....

Amol S Joglekar

Amol S Joglekar (Expert)

01 October 2012 is that a CHANGE in original query? Building per se has to be classified under building. The rate of depreciation shall vary as per sec 32 of income tax act.

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