Capitalisation of an item

This query is : Resolved

Mandeep Singh (Querist)
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17 March 2008 We have estabishe a fish pond in our plant which is made up of Cement and its cost is around Rs.1.75 lac.

Can we treat it as our asset?
If yes, then please guide under which head Building and can we claim depreication on it?

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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17 March 2008 THIS IS AN ASSSETS YOU WILL TAKE SEPERATE
HEAD IN BUILDING BUT THIS IS NOT USE FOR
MANUFACTURING THEN YOU WILL TAKE NORMAL DEPRICIATION U/S 32

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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17 March 2008 It is nothing but part of Building itself. Hence, additional depreciation concept does not arise because add dep applies only to Plant & machinery

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