Classification of assets

This query is : Resolved

CA Monica Patel (Querist)
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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)
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30 September 2012 plant and machinery is better head for all such items instead of furniture.

CA Monica Patel

CA Monica Patel (Querist)
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30 September 2012 sir, whether restaurant building can be treated as plant for income tax purpose

Amol S Joglekar

Amol S Joglekar (Expert)
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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)
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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)
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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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