Depreciation

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Vaibhav (Querist)
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13 February 2009 Actually i am little confused regarding a specific issue on depreciation
If a Building is a part of plant and machinery i mean base bulding without which the machinery cannot operate than should depreciation should be charged At the rate of plant and machinery or building?

CA Abhishek Bagaria

CA Abhishek Bagaria (Expert)
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13 February 2009 Since the building is forming the integral part of the machinery so depreciation is to be charged at the rate of machinery. If not forming integral part then with separate rate.
Plz refer AS-6 & 10 0n Depreciation & Fixed Assets respectively.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 February 2009 But as per section 43(3) of the income tax act,1961,building is not plant.

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Vaibhav

Vaibhav (Querist)
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16 February 2009 Sir I m talking about from the companies act depreciation.

Vaibhav

Vaibhav (Querist)
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18 February 2009 Sir I m talking about from the companies act depreciation.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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02 March 2009 if building is forming the integral part of the machinery without which it cant perform than rate of plant & machinery should taken into account for depreciation under income tax act.

taxindiaconnect

taxindiaconnect (Expert)
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27 April 2009 As per AS - 10 on fixed assets accounting any cost which is incurred to bring the machinery to a working conditions, should form part of the plant and machinery . Accordingly the foundations etc. erected to bring the machine in working condition forms part of the plant and machinery eligible for deprecation at the rate applicable to plant and machinery as per Companies Act. This applies the Income tax act depreciation as well.