Fixed assets or expense (capitalized or not)
This query is : Resolved
Nidheesh V
(Querist)
18 June 2016
1)Purchase of Ups battery for computer treated in which head of Fixed assets ? how much can claim as depreciation?
2)LAN card purchase treated in which head of Fixed assets ? how much can claim as depreciation ?
3)Hub switch purchase treated in which head of Fixed assets ? how much can claim as depreciation ?
4)Printer Cartridge Purchase treated in which head of Fixed assets ? how much can claim as depreciation ?
5)Purchase of Anti-virus for computer treated in which head of Fixed assets ? how much can claim as depreciation ?
2)LAN card purchase treated in which head of Fixed assets ? how much can claim as depreciation ?
3)Hub switch purchase treated in which head of Fixed assets ? how much can claim as depreciation ?
4)Printer Cartridge Purchase treated in which head of Fixed assets ? how much can claim as depreciation ?
5)Purchase of Anti-virus for computer treated in which head of Fixed assets ? how much can claim as depreciation ?
20 June 2016
The basic definition of fixed as per AS 10 or as per IND AS 16 is the item should be held for use in the production or supply of goods or services. The item should be expected to be used for more than one period or one year.
In the above cases cited, cartridge or antivirus software are generally not used for more than one year as the antivirus software are regularly updated. Thus they are treated as consumables.
Remaining can be treated as computers and data processing units. The depreciation in this case is based on life of asset as per Schedule II of Companies Act, 2013. The life is prescribed as 3 years and 6 years.
In the above cases cited, cartridge or antivirus software are generally not used for more than one year as the antivirus software are regularly updated. Thus they are treated as consumables.
Remaining can be treated as computers and data processing units. The depreciation in this case is based on life of asset as per Schedule II of Companies Act, 2013. The life is prescribed as 3 years and 6 years.
Message likes :
1 times
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
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GST input credit on commercial property
- GSTR-9C filing
- Import Order Cancelled.
- TDS on Dashcam rent and allied services
- Working on Gold wastage during Melting of old gold jewellery
- Applicability of tax on invoice
- Section 269ST applicability for capital introduced by partner to his partnership firm
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Gift to nri relatives residing in usa
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
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
