REGARDING LIFT PURCHASE

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This discussion clarifies the accounting treatment for purchasing and installing a lift in a shop. The consensus is that a shop lift is typically considered a fixture or part of the building, not machinery. Therefore, its purchase value can be added to the shop's asset value and depreciated at a 10% rate, either by adding it to the building's cost or creating a separate 'Furniture & Fixture' ledger.

ABHI KUMAR

ABHI KUMAR (Querist)

25 June 2024 LIFT PURCHASE FOR SHOP AND INSTALL IN SHOP

CAN WE CLAIM DEPRICIATION.. OR
ALL PURCHASE VALUE OF LIFT ADD ON SHOP ASSET VALUE (FIXED ASSET)
CONFUSED.?

THANKS IN ADVANCE

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

26 June 2024 If lift is installed after completion certificate, you can account it under fixtures and depreciate at 10% rate.

ABHI KUMAR

ABHI KUMAR (Querist)

26 June 2024 BUT RESPECTED SIR AS PER MY KNOWLEDGE MACHINERY DEP RATE IS 15% ...
I THINK I WAS WRONG. RESPECTED SIR PLZ EXPLAIN SIR ...
THANKS IN ADVANCE

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

26 June 2024 Lift will not come under machinery in a shop. Either consider it in building Or furniture & fixtures, both gets depreciated at 10%.

ABHI KUMAR

ABHI KUMAR (Querist)

28 June 2024 OK SIR TO USKO SHOP KI COST MEIN NAI ADD KARU NA ALAG SE LIFT KE LEDGER CREATE KARKE 10 PERCENT DEPREICATION LAGA DU YA SHOP KI COST MEIN ADD KAR DU ....

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

28 June 2024 If you are depreciating the shop building, then add it to that; otherwise create another group for Furniture & Fixture and add the cost to it for depreciation.

ABHI KUMAR

ABHI KUMAR (Querist)

28 June 2024 ok many thanks sir Dhirajlal Rambhia sir

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Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

28 June 2024

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

29 August 2024 Good Luck.