Claiming 100% depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2011 We have purchased a Rs. 200000 Plant on
16Sept11, The warranty of the asset is
of 1 year.
can we claim Rs.200000 ie. 100% as depreciation?
If yes, Please provide any case law

Krishna Mohan

Krishna Mohan (Expert)
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26 December 2011 As the asset is purchased before 30th Sep,2011, you can claim full depreciation rate as provided for P&M depreciation in IT Act.

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2011 Sir, can i used warranty as the basis for
claiming full depreciation ie. entire cost?

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Hari Beldona

Hari Beldona (Expert)
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26 December 2011 You can not claim entire cost of the plant & Machinery that is as per depreciation as per Income Tax.

Entire cost can be claimed as depreciation in case of pollution control equipments, solid waste control equipment etc.

Guest

Guest (Expert)

27 December 2011 Pls note that warranty card validity is generally one year in almost all equipments ranging from commercial machines to household appliances.

Warranty card is issued for promise of after sale services by the vendor. It however in no way convey that asset has useful life for one year. Asset can have useful life for 10 years as well yet warranty is given by the manufacturer for 1 year.

You have to charge depreciation as per income tax act at the specified rate of 15% , in your case since assset is purchased before 02 oct hence you are eligible for 15 %.

Thanks.