22 May 2009
My client company Purchases 3 HP printer in last year it shows under the head computers & others and claim depreciation @60% Will it correct? I have doubt why don't we shown under Office equipment Plz clarify me?
22 May 2009
Yes the printers and other peripherals attached to a computer are part of computers, hence the deprecation has to be charged at the rate of 60% on such peripherals. This matter come up for the consideration before the ITAT Kolkata in the case of ITO vs. Samiran Majumdar 280 ITR (At) 74 (Kolkata) and ITAT New Delhi in the case of ACIT vs Continental Carriers (P) Ltd.ITA No. 2137/Del/2008. Where the Hon,ble Courts have decided that the rate of deprecation on computer pheripharals would be 60% as applicable to Computers. For further details you may visit my Blog on CAclub India
23 May 2009
Let me explain with some practical example- 1) if you have purchased type writer- in this case there is a seperate existance of type writer,type writer can work seperately with out any connectivity of computer. 2) if you have purchased printer- in this case you cannot seperately use this printer, it form a part of computer, hence the classification made by your client is correct
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