13 February 2009
Actually i am little confused regarding a specific issue on depreciation If a Building is a part of plant and machinery i mean base bulding without which the machinery cannot operate than should depreciation should be charged At the rate of plant and machinery or building?
13 February 2009
Since the building is forming the integral part of the machinery so depreciation is to be charged at the rate of machinery. If not forming integral part then with separate rate. Plz refer AS-6 & 10 0n Depreciation & Fixed Assets respectively.
02 March 2009
if building is forming the integral part of the machinery without which it cant perform than rate of plant & machinery should taken into account for depreciation under income tax act.
27 April 2009
As per AS - 10 on fixed assets accounting any cost which is incurred to bring the machinery to a working conditions, should form part of the plant and machinery . Accordingly the foundations etc. erected to bring the machine in working condition forms part of the plant and machinery eligible for deprecation at the rate applicable to plant and machinery as per Companies Act. This applies the Income tax act depreciation as well.
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