I want to know that is there any defination of furniture and fixture or Plant & Machinery for the purpose of depreciation as per Companies Act. weather Water purifier will be classified as P & M or F & F???
CA Rashi Agrawal (Chartered Accountant) (102 Points)
19 June 2012I want to know that is there any defination of furniture and fixture or Plant & Machinery for the purpose of depreciation as per Companies Act. weather Water purifier will be classified as P & M or F & F???
Tejaswi Kasturi
(student-cpt)
(427 Points)
Replied 19 June 2012
Plant and machinery are something you use to produce or manufacture something or which is the object of the primary business which you are in. otherwise if the object is used for convenience or help of administration it would be classified as furniture. If the water purifier is a reverse osmosis water purifier used to purify cans of mineral water which are then sold it would be plant & machinery and if it is a water purifier used for drinking purposes in a business establishment or an office then it would be furniture
CA Rashi Agrawal
(Chartered Accountant)
(102 Points)
Replied 19 June 2012
Is there any legal or written justfication of what you are replying..if yes then please let me know.and if you are saying that plant & machinery are primary used for business purpose then why we classify mobiles phones as plant & machinery???
Priyanka Goyal
(AUDIT & TAX CONSULTANT)
(117 Points)
Replied 31 July 2015
Hi,
Mobile earlier under schedule 6 classified under plant & Machinery when there is no category of "OFFICE EQUIPMENT" because Mobile is an asset wholly used for the purpose of business, whereas water purifier is for staff welfare not directly used for the purpose of Business.
CAclubindia
