05 January 2018
Respected Sir / Madam A Builder engaged in the business of construction of residential complex after completing the building assessee has installed Solar panel and sales electricity generated to MSEDCL
What is the nature of transaction and changeability of tax for electricity generation activity is additional depreciation can be claimed by assessee for generation activity, if additional depreciation can be claimed then what will be the rate of normal depreciation
06 January 2018
Sir 1. as per amendment in section 32 by finance Act 2016 maximum depreciation can be claimed is 40% 2. but for Charging depreciation for Generation and distribution of power rate of depreciation is different 3. as additional depreciation can be claimed (because as per amendment production of electricity is also considered as manufacturing a thing) then rate of normal depreciation should not be 80% or 40% it should be as per Appendix IA of the section 32 sir please solve my doubt
06 January 2018
See the link. https://www.google.co.in/url?sa=t&source=web&rct=j&url=http://www.energetica-india.net/download.php%3Fseccion%3Darticles%26archivo%3DOaz68bDAqQ1GbjXRx9gXtdaKNnQRvBtbh6X00YoOOupxH7kEc8x6W8.pdf&ved=0ahUKEwjm5-yM6cLYAhWFOI8KHf43A0YQFggkMAA&usg=AOvVaw03Iy14EVFbbq6GQqy2lgXn
06 January 2018
Agreed with you only 40% depreciation can be claimed. See the link. https://www.google.co.in/amp/wap.business-standard.com/article-amp/pti-stories/solar-power-tariffs-may-rise-as-depreciation-benefit-capped-116022901043_1.html
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