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Fixed Assets Depr Rate

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Umesh Vani

COMPANY SECRETARY

4 Points Posted on 13 November 2021

Dear Sir/Ma'am,

My query is one of my client has installed a Private Network Tower at his Head office and branch office for smoother network connectivity. Warranty for the tower is 25 years by the installer, but warranty for the Network devices attached to the tower is 1 year only.

So my question is whether the Tower is considered at 40% Depreciation Rate as Computer related capital goods or some other Rate.

Replies (3)

Quick Summary

This discussion seeks clarification on the appropriate depreciation rate for a private network tower installed at a head office and branch. While the tower itself has a 25-year warranty, the attached network devices only have a 1-year warranty. The user is questioning if the tower should be depreciated at 40% as computer-related capital goods or at a different rate, with a suggestion of 15% being mentioned.