Depreciation rate
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 August 2012
What is the depreciation rates for the moulds and dies used for manufacturing of medical equipments as per companies act?
04 August 2012
As per Para 9 of AS 6-
Any addition or extension to an existing assetwhich is of a capital nature and which becomes an integral part of the existing asset is depreciated over the remaining useful life of that asset. As a practical measure, however, depreciation is sometimes provided on such addition or extension at the rate which is applied to an existing asset.Any addition or extension which retains a separate identity and is capable of being used after the existing asset is disposed of, is depreciated independently on the basis of an estimate of its own useful life.
Accoringly, In my opinion, the moulds & dies become integral parts of the equipment and have same useful life that of equipments. Depreciation will be provided at the same rate which is applicable to equipments
Any addition or extension to an existing assetwhich is of a capital nature and which becomes an integral part of the existing asset is depreciated over the remaining useful life of that asset. As a practical measure, however, depreciation is sometimes provided on such addition or extension at the rate which is applied to an existing asset.Any addition or extension which retains a separate identity and is capable of being used after the existing asset is disposed of, is depreciated independently on the basis of an estimate of its own useful life.
Accoringly, In my opinion, the moulds & dies become integral parts of the equipment and have same useful life that of equipments. Depreciation will be provided at the same rate which is applicable to equipments
Message likes :
1 times
05 August 2012
i agree with CA Amit Kedia very useful
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- Can partnership firm show income under 44ad
- Banking Related Issue
- Rental income of jointly held property
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
