Depreciation on computers

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

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