Fixed assets

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Harsh Nathani (Querist)

07 November 2012 Suppose a new Building has been constructed(Transfer from CWIP to Fixed Assets).So, Whether the Electrical Fittings like Lightning Bulbs should be capitalised in building or seperately as Electrical Installation?(Becoz depreciation rates are different)

Amol S Joglekar

Amol S Joglekar (Expert)

07 November 2012 Lighting arrangement per se should be classified separately. (Unless in the case of ready made flats where a lumpsum consideration is paid for the flat which comes along with electrification system, drainage system, security system, drinking water system and so on)

Harsh Nathani

Harsh Nathani (Querist)

07 November 2012 Actually its an administration building constructed within the factory premises.In that case ,under which head the Lightning arrangement should be classified? Is it Electrical Installation carrying 4.75% SLM depreciation rate?

Amol S Joglekar

Amol S Joglekar (Expert)

07 November 2012 I think... it should be classified as such... electrical installation.

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