Additional depreciation under section 32

This query is : Resolved

CA RAJENDRA KR SHARMA (Querist)
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01 March 2013 Dear Experts..........

I need your valuable opinion in regarding to the additional depreciation.....

Fact of the query..

We are mainly engaged in the Govt contract and alongwith that our one unit is engaged in manufacturing of pipe and sanitary items for our Govt project.We purchased in current year some plant and machinery for the manufacturing unit...

So my query is that Whether we can claim additional 20% depreciation on plant and machinery purchased for manufacturing unit

SANJAY TALATI

SANJAY TALATI (Expert)
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09 March 2013 Additional depreciation is available u/s 32(1)(iia)to an Assessee which is an industrial undertaking i.e. he is engaged in the business of manufacture or production of any article or thing.

It is available in respect of the purchase of any new machinery or plant other than ships and aircraft.

In your case if you are procuring the new machinery for the manufacturing unit than u can claim 20% additional depreciation if the asset is used for more than 180 days else 10%.