Depreciation rate

Hi, Tushar

      The depreciation rate on Crockery, Kitchen Items for Restaurant & Bar should be:-

1.  Uner Income Tax Act, 1961                             15%           (Considered as Plant & Machinery)

2.  Under Companies Act, 1956                          13.91%      (Also Considered as Plant & Machinery)

Hello Neeraj,

I had also seen those dep. rates but these items are like consumable items. Thier life is short. they got broken and replaced frequently. this rate of dep. will be very low for these.

These should be charged at high rate of dep., but it could not found the higher rate.

Thanks for replying but try if u could found anywhere higher rate of dep. for these items.

these are ites are consyumable so that the rates applicable for this will be very high.

these are ites are consumable so that the rates applicable for this will be very high.

Hi Tushar,

      if such crockery & kitchen items are subject to frequently replaced i.e. used within one year then there is no requirement to consider as assets and it should be considered as consumables in the very first year (i.e. 100% charged to Profit & Loss Account)

Hi Tushar,

generally the value of these items will be less than Rs 5000. Hence it should be written off fully i.e 100% depreciation(under companies act)

Under IT Act, it can be taken as plant and machinery.

hello sir this is my first post well i want to know that what is the depreciation rate of motor cars for motor car seller.  if motor cars sale in six month or if no sale all year

For crockery at restaurant - 100%, since its a consumable item. 

Kitchen appliances can be written off at 15% under Income Tax Act, and any higher percentage under Companies Act considering the higher wear and tear. However, if you have a warranty period extending beyond a year, you could choose to use that as a base for calculating the period over which you wish to depreciate.

For trademarks, rate as per Income Tax act would be 25%, companies act would depend on the time you believe you would get returns from it.

Motor cars for motor car seller would be Stock in Trade, and would not qualify as fixed asset. Hence, no depreciation needs to be charged on it.

Hello sir

Can any one please let me know the rate of depreciation to be charged on crockery & cutlery if the cost is more than 7 lac......

Hi Tushar,

As per companies act,depreeciation on motor car shoud be taken from the very first day of financial year till the date of sale of motor car.

As per income tax,depreciation shold be charged on block of asset and if,asset is not available on last day of financial year then no question arise for depreciation. Motor cars for motor car seller would be Stock in Trade, and would not qualify as fixed asset. Hence, no depreciation needs to be charged on it.