Rate of depreciation as per income tax act -1961

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1. LAN Network 2. Air conditioner is it Machinery/ Furniture
Replies (4)

1. Air conditioner is a Machinery and hence 15% depreciation is applicable

2. LAN Network ( which includes routers, modems, switches etc) i.e Networking Eqipments and hence is plant and Machinery.

 

Yes plant and machinery charged  dep. @ 15 percent.

The High Court in CIT vs BSES Yamuna Powers Ltd. case observed that computer accessories and peripherals such as printers, scanners and server etc. form an integral part of the computer system and they cannot be used without the computer. Consequently, the High Court held that since they are part of the computer system, they would be eligible for depreciation at the higher rate of 60%. LAN is a computer network that interconnects computers. you can charge 60% rate. if an AC machine installed in office premises charge dep @ 10 treating it as a furniture items , if it is installed in factory charge dep @ 15%.

Agreed with Pratick Datta


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