Depreciation on cctv as per companies act

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2013 Dear Sir/Mam,

What is rate of Depreciation on CCTV as per Companies Act?

Prashanth

Prashanth (Expert)

21 July 2013 Hello,

Taken the rate as applicable to P&M.

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2013 Can it be consider as CONTINUOUS PROCESS?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

21 July 2024 As per the Companies Act, 2013, CCTV cameras are categorized under the "Office Equipment" category for the purpose of depreciation. The depreciation rate applicable to Office Equipment is 10% per annum on the Written Down Value (WDV) method.

Here are the details for depreciation of Office Equipment under Schedule II of the Companies Act, 2013:

- **Category**: Office Equipment
- **Depreciation Rate**: 10% per annum on WDV method

Regarding whether CCTV systems can be considered as part of a "continuous process" for claiming higher depreciation rates, such as those applicable to Plant and Machinery used in a continuous process:

- **Continuous Process**: Generally, continuous process refers to industries where production or operation is continuous without significant interruptions. Assets used in such industries are eligible for higher depreciation rates under the Income Tax Act, but not necessarily under the Companies Act, which has fixed rates based on asset categories.
- **CCTV as Office Equipment**: CCTV systems, being categorized as Office Equipment under the Companies Act, would typically be depreciated at the prescribed rate of 10% per annum.

Therefore, for a Private Limited Company under the Companies Act, the depreciation rate applicable to CCTV systems would be 10% per annum on the Written Down Value method, unless there are specific provisions or interpretations that differ based on industry or usage context, which may require further clarification from a tax advisor or accountant familiar with your specific circumstances.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now