Budget
This query is : Resolved
06 March 2013
A company investing Rs 100 crore or more in plant and machinery in April 1, 2013 to March 31, 2015 will be allowed 15 per cent investment deduction allowance apart from depreciation.-Kindly explain it in details.
06 March 2013
If a manufacturing co makes fresh investment in Plant & Machinery (i.e., the P&M should be ready to use) of Rs 100 crore or more, the company can claim a deduction of 15% over and above the depreciation rates. For ex. if you make an investment of Rs 150 crores in FY 13-14, the co. can claim a deduction of Rs 22.5 crores (150 * 15%)over and above the normal depreciation that you are entitled to.
Message likes :
1 times
06 March 2013
And in FY 14-15 also you make an investment of Rs 200 crores for ex. You will again be entitled to a deduction of Rs 30 crores (200*15%).
However, if you invest Rs 80 crores in FY 13-14 and 70 crores in FY 14-15, you will be able to claim a deduction of Rs 22.5 {(70+80)*15%}crores only in FY 14-15 because only in FY 14-15 has your investment crossed 100 crores.
However, if you invest Rs 80 crores in FY 13-14 and 70 crores in FY 14-15, you will be able to claim a deduction of Rs 22.5 {(70+80)*15%}crores only in FY 14-15 because only in FY 14-15 has your investment crossed 100 crores.
06 March 2013
In which form this deduction will be. Does the company need to club that additional deduction amount along with the normal depreciation or in any other manner?
06 March 2013
The additional deduction would be allowed U/S 32AC of the Income Tax Act.
06 March 2013
thank you so much sir.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Payment of bonus act - notice pay recovery
- MIS MATCH OF INVOICE NUMBER
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
