Depreciation rate for ups
jijesh (Article Trainee) (76 Points)
09 December 2011
For the purpose of depreciation,Can we classified computer ups also under computer?
Deepak Gupta
(CA Student)
(15922 Points)
Replied 09 December 2011
| Originally posted by : jijesh | ||
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For the purpose of depreciation,Can we classified computer ups also under computer? |
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UPS is NOT an integral part of computer. It will be treated as Plant & Machinery.
Nestle India Ltd. vs Deputy Commissioner Of Income Tax on 30 April, 2007.
l.lakshmi roopa
(profession)
(22 Points)
Replied 23 December 2011
Can you please clarify whtether UPS is coming under electrical equilpments or plant & machinery?
Z
( )
(2960 Points)
Replied 11 January 2012
Yes, even as per AS-6
There are 2 kinds of assets, dependent and independent
Dependent assets are those assets which are dependent on the other asset for the use for example Graphic cards , printers, scanners and other peripherals in case of computers . Their use is dependent, they can't be used independently. And such assets should be capitalized in such other asset . They integrate into system/asset
In case of independent asset if the asset can be used without depending upon a particular asset then such an asset is independent asset for eg UPS (not necessarily requires computer) , They do not integrate into system/asset
Para 9 states
Para 24 states
Any addition or extension which becomes an integral part of the
existing asset should be depreciated over the remaining useful life of
In the case cited above UPS was categorized in Plant and machinery
Its prolly 'cause it is not covered under heads of electrical items and hence taken into genral category
Similar view point was taken in ACIT v Container Corporation of India Ltd
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