26 December 2011
We have purchased a Rs. 200000 Plant on 16Sept11, The warranty of the asset is of 1 year. can we claim Rs.200000 ie. 100% as depreciation? If yes, Please provide any case law
26 December 2011
You can not claim entire cost of the plant & Machinery that is as per depreciation as per Income Tax.
Entire cost can be claimed as depreciation in case of pollution control equipments, solid waste control equipment etc.
Guest
Guest
(Expert)
27 December 2011
Pls note that warranty card validity is generally one year in almost all equipments ranging from commercial machines to household appliances.
Warranty card is issued for promise of after sale services by the vendor. It however in no way convey that asset has useful life for one year. Asset can have useful life for 10 years as well yet warranty is given by the manufacturer for 1 year.
You have to charge depreciation as per income tax act at the specified rate of 15% , in your case since assset is purchased before 02 oct hence you are eligible for 15 %.