regarding Dep.

This query is : Resolved

kamal (Querist)
Follow

28 May 2010 Dear Friends

I am working with a Manufacturing unit,

and we purchase Frok Lifts for handing the material one place to another within the factory hance we treat it as Plant & machinery.
But as per our Auditors is concerned they advice it is covered under Vehicle and dep charged of Vehicle rate not plant & Machinery.

Fork lift having 4 weels hence it is Vehicle.

But on practical ground it is not a vehicle.

Please advice what is the proper head,
and what is the proper reply for auditors.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

28 May 2010 It will be treated as Plant & Machinery or Tool & Equipment.
It is not vehcile.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

28 May 2010 You can take example of trollies having 4 wheel, it is also tool & equipment not vechicle.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

28 May 2010 AGREE WITH MR. BANSAL

kamal

kamal (Querist)
Follow

31 May 2010 but how can i convence the auditors , because they were stick on it they need reference agaisnt it

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

31 May 2010 ASK THEM TO SHOW REFERENCE OR CASE LAW IN FAVOR OF THEIR DECISION.

kamal

kamal (Querist)
Follow

31 May 2010 As per auditors opinion it was a vehicle and should be charged in vehicle head, if we need to convance them then we need case law refferance. As per practical paraliance it is a P & M . Please give me the case reff so that i would convance tham.

Thanks