Friends
As per Schedule II to CA 2013, Air Conditioner should be classified as Office Equipment or Plant & Machinery. If PM will it be in the useful life of 15 years category. But AC with 15 years -- is it a reasonable useful life coverage.
Under old regime, depreciation rate on AC classified under PM was 13.91%.
Regards,
Friends
Any responses please.
Regards
Very Correct Answer Amit.....
Hi,
Air Conditioner is generally classified as Electrical Installations and Equipment which has a useful life of 10 years which is a fair estimate of the life of an AC in common parlance.
| Particlulars as per Companies Act 2013 | Life | SLM | WDV |
| (XIV) Electrical Installations and Equipment [NESD] | 10 | 9.50% | 25.89% |
What is now the depreciation value of Air Conditioners?
The depreciation value of Air Conditioners is 15%
Hope it helps!
When an air-conditioner is utilized for business purposes and falls within a block of assets, it is subject to a depreciation rate of 15%.
Depreciation Rates as per Income Tax Act for FY 2023-24 - https://www.caclubindia.com/articles/depreciation-rates-as-per-income-tax-act-for-fy-2023-24-49584.asp
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