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Depreciation rate on air conditioner as per income tax

mahendra sahoo (Gst Practicion) (700 Points)

10 June 2017

please clear the query we purchased An Air Conditioner in fy 2016-17, now what depreciation rate charged as per income tax law ?

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8 Replies

Praveen Kachhawa (Financial Accountant) (225 Points)
Replied 10 June 2017

Will be claimed 15

Poltu Ghosh (Job) (1865 Points)
Replied 10 June 2017

If A.c. is used office it will be treated as furniture depreciable at 10 percent. if the A.C. is used for manufacturing or production or preservation of goods it will qualify as plant and machinery to be depreciated at 15 percent

5 Like

venkatesh (student) (30 Points)
Replied 23 February 2018

yogesh (proprietor) (66 Points)
Replied 14 April 2018

CAN YOU GIVE ME SOURCE OF THIS OPINION AS ON INCOME TAX SIDE WE DONT SEE SUCH BIFURCATION.

Kartikey Jain (Intern) (2377 Points)
Replied 09 July 2018

Originally posted by : Poltu Ghosh
	If A.c. is used office it will be treated as furniture depreciable at 10 percent. if the A.C. is used for manufacturing or production or preservation of goods it will qualify as plant and machinery to be depreciated at 15 percent

Yes, I agree. Depreciation rate on AC depends on its usage. If AC is being used in Office and is not involved indirectly or directly in production process, it shall be considered as Office equipment and 10% depreciation will charged p.a.

Else, it shall be a Plant & Machinery and depreciation would be charged at 15% pa

1 Like

shahyar husain (1235 Points)
Replied 05 November 2020

Originally posted by : Kartikey Jain
	Originally posted by : Poltu Ghosh If A.c. is used office it will be treated as furniture depreciable at 10 percent. if the A.C. is used for manufacturing or production or preservation of goods it will qualify as plant and machinery to be depreciated at 15 percent Yes, I agree. Depreciation rate on AC depends on its usage. If AC is being used in Office and is not involved indirectly or directly in production process, it shall be considered as Office equipment and 10% depreciation will charged p.a. Else, it shall be a Plant & Machinery and depreciation would be charged at 15% pa

Sir can you please tell me that whether the ACs being used in restaurants, bars and product manufacturing factories(such as musical instrument companies) are considered as commercial or not? Are ACs related to the production process in such places? If yes, can it depreciate their value?