01 November 2011
A tubewell has been constructed at a factory. A pump set has been installed to pull water from the tube well. The tubewell facilitates supply of water to the factory for production purposes with the help of pipes. These pipes also facilitate supply of water to gardens situated within the factory and also to other places like washrooms, basins, etc. I wanted to know the treatment of the Tubewell, Pump set & the Pipes for depreciation purpose. Under which head will the same be classified and what will be their respective rates of depreciation under companies act as well as Income Tax Act? Please reply at the earliest.
furthermore
if we say tht it cms in plant and machinery then wat abt this :-
"Buildings" include roads, bridges, culverts, wells and tube wells.then how it will be considered as P&M?
CAclubindia
