Depreciation Rate for Air conditioner

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What is the rate of depreciation for air conditioner used in office ?
Replies (17)
Quick Summary
Depreciation on air conditioners depends on use. Office use may be treated as office equipment at 10 percent, while use in production or business operations is treated as plant and machinery at 15 percent under Income Tax.

As per Income tax it is 15% and it will be in block of Plant & machinery

Yes. 15% depreciation applicable...

I would like to differ. If the A.C. is used in office then it is classified as office equipments and thus depreciation rate is 10%. Only when a.c. is used for production purposes it can be classified as plant and machinery. Then it will attract depreciation rate of 15%.
Kindly infrom me for how long do you depreciate air conditioner?
Under income tax depreciation is not done on individual asset rather it is done on block of asset

Further we have to depreciate till block till it have a single asset

If asset discard than no treatment, if sold than reduce the sale price from block of asset

Thank You

Thank you very much for the information. Recently, I just had to discuss this issue with my superiors and you topic helped me a lot. As a result, the superiors decided to purchase several air conditioners. We still had to decide for a long time where it is best to order the installation of an air conditioner and on the advice of one of the employees we turned to https://www.socool.sg/ and did not regret it. Now finally employees will no longer be very hot in the office in the summer.

Would profit or loss arise on sale of air conditioner or any other depreciable asset used in the business?

Yes... profit or loss will be at sale of FA...

Would that profit be treated as capital gain?

Would that profit be treated as capital gain?

- Yes...
Depreciation rate will be 15%

Depreciation rate will be 15% as per IT Act

The cost of acquiring fixed assets is written off using depreciation.

The cost of acquiring fixed assets is written off using depreciation. This process in tax and accounting is carried out in different ways. However, regardless of this, when non-circulating funds enter the organization, the need arises to establish its useful life, that is, such a time period during which the object will bring benefits, and based on this, assign the air conditioner to one of the depreciation groups.
But good care and timely repair in case of breakdown can slow down the wear of the air conditioner. This can extend its validity by an extra couple of months for sure. Always ask to [url=https://epicductcleaning.com.au/duct-cleaning-sunbury/] have your equipment repaired [/url]. Good luck!

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