Get Answers to 3 GST Queries FREE with Expert CA guidance from CAclubindia Pro. Subscribe Now!

Depreciation benefit under sec 32 ac

Tax queries 1077 views 1 replies

Sarvesh

B.Com

24 Points Joined January 2015

Hello,

I wanted to know whether Depreciation can be claimed under Section 32 AC in FY 14-15 & FY 15-16 in addition to Accelerated Depreciation for pwoer assets.

Additionaly, does a power plant qualify as a MANUFACTURER or PRODUCER of article or thing under this section?

Best,

Sarvesh

Replies (1)

Vishal Goel

Chartered Accountant

1693 Points Joined April 2014

Section 35AC deduction is In Addition to the depreciation and additional depreciation.
Deduction under section 32AC shall not to be reduced from WDV of Block of asset.
This deduction is not available to Power generating units.

ELIGIBLE ASSESSEE:(U/S 35AC)

Deduction is available only to COMPANY (Indian as well as Foreign) and
Company must be engaged in MANUFACTURE or PRODUCTION of any article or thing.

Power is not article or thing because we can't touch it.