22 June 2009
IF a Manufacturing Unit has purchased New Plant & Machinery during the Financial Yr 2008-09, then Depriciation over the same will have to be charged at what rate under Income Tax Act and under Companies Act? Will the provision of Additional Dep applicable over it? WIll it be mandatory or optional?
22 June 2009
If a manufacturing unit purchased a fixed assets which will be used in manufacturing process, then the assessee will be entitled to claim additional depreciation @20% on cost over and above its normal dep. @15%. As far as company law is concerned dep will be charged acc. to the rates prescribed by schedule XIV of Companies act and accordingly 13.91% in case of WDV if plant doesnt used for continuous process & if used for continuous then charged @15.33%
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