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Whether printer and scanner is treated as a part of computer

Mohd. Hammad (CA Article ) (103 Points)

14 March 2012

Hello Everybody,

My query is...whether PRINTER or SCANNER is a part of

Computer; or

Office Equipment

While reply plz give support as per Companies Act 1956 and Income tax act 1961.

Regards

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14 Replies

CA Kamal Aggarwal (Accounts Manager) (78 Points)
Replied 14 March 2012

Printer or Scanner comes under computer and computer peripherals.

1 Like

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 14 March 2012

Yes they are to be included in Computers.

Regards

Prateek

1 Like

Jitendra Vyas (Commercial Officer) (178 Points)
Replied 14 March 2012

Yes printer and scanner for depreciation purpose and for showing purpose can be treated as part of computer

1 Like

Mohd. Hammad (CA Article ) (103 Points)
Replied 14 March 2012

Thanks for your views...

Can U plz provide some reference with Companies Act and Income Tax act...

As I didnt found the words computer and computer peripherals in schedule XIV of comapnies act...only the word COMPUTERS is mentioned there

Also what the best sub head of FA for Electrical Fittings??

Regards

Sonam Bidasaria (CA) (770 Points)
Replied 14 March 2012

As per Schedule XIV, "Dara processing machines including computers" are chargeable to depreciation at the rate of 40% in case WDV method is used.

From this inclusive definition, it can be understood that computer is not specific criteria but it falls under the definition of general criteria i.e. Data Processing Machines .

Hence, Printer and scanner cannot be included under the head "Computer". It is "Office Equipment" and will be charged at the rate of 13.91% (WDV) like Fax and Xerox Machnes.

Under Income Tax Act, the same will be included in Computer Peripherals and chargeable at the rate of 60%.

5 Like

Mohd. Hammad (CA Article ) (103 Points)
Replied 14 March 2012

Thanks Sonam Bidasaria....

These are the conclusive words to understand the Companies Act and Income Tax Act....pretty much clear!!

Just one more thing....is it contradictory to conclude in an asset in different heads as per above 2 Acts??

Sonam Bidasaria (CA) (770 Points)
Replied 14 March 2012

Para 29 of AS-6 of Companies (Accoutning Standards) Rules, 2006 reads as under:

The following information should also be disclosed in the financial statements alongwith the disclosure of other accounting policies:

(i) depreciation methods used; and

(ii) depreciation rates or the useful lives of the assets, if they are different from the principal rates specified in the statute

governing the enterprise.

That means, if any Company does not follow Schedule XIV, then such disclosure is required.

However, if Company intende to pay managerial remuneration under Sec 309 as a percentage of net profit, then Schedule XIV has to be followed.

2 Like

Niraj Mahajan (Practising CA) (985 Points)
Replied 14 March 2012

FOR THE PURPOSE OF INCOME-TAX, SCANNER AND PRINTER ARE PART OF COMPUTERS AS PER THE CASE LAW OF DATACRAFT CORP

1 Like

Mohd. Hammad (CA Article ) (103 Points)
Replied 14 March 2012

Thanks again Sonam for your valuable time...

The facts u mentioned above are very satisfying...

Could U please comment on my another post named "Fixed Asset Classification"...it is urgent!!

Looking forward for a useful professional discussion.!!

(Guest)

Originally posted by : Sonam Bidasaria
	As per Schedule XIV, "Dara processing machines including computers" are chargeable to depreciation at the rate of 40% in case WDV method is used. From this inclusive definition, it can be understood that computer is not specific criteria but it falls under the definition of general criteria i.e. Data Processing Machines . Hence, Printer and scanner cannot be included under the head "Computer". It is "Office Equipment" and will be charged at the rate of 13.91% (WDV) like Fax and Xerox Machnes. Under Income Tax Act, the same will be included in Computer Peripherals and chargeable at the rate of 60%.