Depreciation rate on air conditioner as per income tax

please clear the query we purchased An Air Conditioner in fy 2016-17, now what depreciation rate charged as per income tax law ?
Replies (8)
Quick Summary
Depreciation on air conditioner depends on use. If used in office, it may be treated as furniture or office equipment with about 10 percent rate. If used in production or as plant and machinery, depreciation is generally 15 percent.

Will be claimed 15
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

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

 

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

 

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? 

In general, it will be treated as plant & machinery on which the rate of depreciation prescribed is 15%

There are two possibilities to it, depending on the type of usage you've been indulged in :

1. Using it for offices and other commercial purposes: The rate of Depreciation would be 10% 

2. Using it in the production units or in preservation etc. it would qualify as Plant and Machinery, hiking the rate of depreciation % to 15. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
10 November 2026
Direct Tax Manager

CAAQ CONSULTANCY PVT LTD

New Delhi

CA Final

View Details
Company
12 November 2026
Tax Product Specialist

BharatX.ai

Gurgaon

B.Com

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
10 November 2026
FP&A Executive

Gujarat Guardian

Ankleshwar

CA Final

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details