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Query on depreciation

Guddu (35 Points)

10 May 2007

WHETHER CD-ROM forms part of P&M for the purpose of depreciation OR COMES UNDER THE CATEGORY OF Computers. Plz Reply

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6 Replies

Manoj (13 Points)
Replied 10 May 2007

I dont know.

Sundar (16 Points)
Replied 10 May 2007

CD ROM form part of computers

Krish (28 Points)
Replied 10 May 2007

This is just my opinion!

CD-rom should be considered as a part of computers/stationery due to the following reasons:

1) The value is very less for treating it as a Capital Expenditure,

2) It may not be in use for more than one year, i.e, low chance of obtaining future
benefit.

3) Its a recurring expense.

Ankit Bhatia (163 Points)
Replied 10 May 2007

it will come under Computers and not the residuary head

Nravindranath (13 Points)
Replied 10 May 2007

It forms of part Plant and Machinery under the classification of Computers including computer software and is eligible for depreciation at the rate of 60%
Please refer page 278 of Direct taxes Law and practice by Vinod K Singhani, Professional edition 2005

Rajesh Itty Eapen (111 Points)
Replied 10 May 2007

hi friends

CD ROM forms very much part of computer. lf the printer, monitor, scanner, mouse, keyboard etc forms part of a computer, why should not a CD ROM not form part of it?? well, even a floppy drive is part of computer... 60% depreciation can be claimed u/s32.

regards
rajesh itty eapen