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Componantisation of asset

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Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2015 As per new rules existing as well as new assets are to be componantised. so whether depreciation as per IT act to be provided on as per rate applicable to the particular componant or at the rate applicable to whole asset? e.g.: Elevator part of building is componantised. so as per IT act separate rate for building and elevator or same rate as it is integral part of building?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 September 2015 No componantisation required for IT provide depreciation as per rate applicable to whole asset.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2015 Oh! That would be a very tedious job. We have to maintain record of different part of a assets with different rates of depreciation for Comnpanies Act. and a consolidated record of the whole asset under IT Act. The list of assets under both acts will never match and in case of error or mistake it will be hard to find out the same.

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