Depreciation on computers

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 March 2014
Hello,

I want to know the rate of depreciation on computers used in business of cyber cafe.

Will it be charged @60% or @15%(as normal machinery of business)

Thank you

Sandeep Dharar

Sandeep Dharar (Expert)
Follow

07 March 2014 It depends on the type of organisation the cyber cafe have. Generally they r proprietorship, so rate as per IT act should b applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

07 March 2014 It is a proprietorship, but just confused between the rates of depreciation.

As the IT act says that the machinery used in normal course of business should be depreciated @15% but for computers it states @60%.

In cyber cafe it acts as a machinery used for running the business.

So just want a clarity on this whether 60% or 15%

Sandeep Dharar

Sandeep Dharar (Expert)
Follow

07 March 2014 It will b 60%, as pe IT act, and not 15%.

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