Pls help

I have following doubts reg Rates of depn..pls help

1.Electrical fittings in factory-

2.water coolers kept in factory.

3.Mobile and telephones kept in factory

my client is telling since ABOVE ITEMS r used in plant it wil cme under plant..is the treatment correct???

pls help..thks in advance.

Replies (3)

AS PER IT ACT 1961 UNDER SECTIION 32 THE DEPRICIATION RATE ARE AS FOLLOWING :

  1. ELECTRIC FITTING IN FACTORY ===10% AS FURNITURE AND FITTING HEADING
  2. WATER COOLER                          ===15% AS PLANT AND MACHINARY
  3. MOBILE                                          ===15%AS GENRAL PLANT AND MACHINARY
  4. TELEPHONE AT ANYWARE       ===00%  IF IT IS NOT PURCHASE OTHERWISW 15% AS P&M

Definition of P & M is changed.

As per section 43(5) plant and machinery

includes..... 

excludes furniture, building, livestock and tea bushes.

Therefore the above answer stand the test of time in changed circumstances.

thanks

CS K.K. Agrawal

https://taxbykk.blogspot.com/

SIR I AM ATTACHING THE DOC MEANING OF PLANT AND MACHINARY AS PER TAX LAW UNDER SECTION 43(3)

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