and we purchase Frok Lifts for handing the material one place to another within the factory hance we treat it as Plant & machinery. But as per our Auditors is concerned they advice it is covered under Vehicle and dep charged of Vehicle rate not plant & Machinery.
Fork lift having 4 weels hence it is Vehicle.
But on practical ground it is not a vehicle.
Please advice what is the proper head, and what is the proper reply for auditors.
CA. B.K.BANSAL ( Expert ) 28 May 2010
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It will be treated as Plant & Machinery or Tool & Equipment. It is not vehcile.
CA. B.K.BANSAL ( Expert ) 28 May 2010
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You can take example of trollies having 4 wheel, it is also tool & equipment not vechicle.
SANJAY GUPTA (M.Com, AICWA) ( Expert ) 28 May 2010
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AGREE WITH MR. BANSAL
kamal ( Author ) 31 May 2010 but how can i convence the auditors , because they were stick on it they need reference agaisnt it
SANJAY GUPTA (M.Com, AICWA) ( Expert ) 31 May 2010
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ASK THEM TO SHOW REFERENCE OR CASE LAW IN FAVOR OF THEIR DECISION.
kamal ( Author ) 31 May 2010 As per auditors opinion it was a vehicle and should be charged in vehicle head, if we need to convance them then we need case law refferance. As per practical paraliance it is a P & M . Please give me the case reff so that i would convance tham.
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