16 February 2016
I HAVE PURCHASED SEWING MACHINE & WEIGHING MACHINE FOR BUSINESS PURPOSE UNDER WHICH LEDGER HEAD I CAN TAKE THEM??CAN I TAKE THEM AS MISC EXP. OR OFFICE EXP.
16 February 2016
The expenditure referred by you, is of capital nature. Hence, you cannot deduct this expenditure from the income directly. However, an allowance as per 32 and applicable rules (the rates as per the appendix to IT Rules i.e. 15% for plant or machinery is applicable) to deducted from the profits, if available for deduction of such allowance. If there is no sufficient profit, the same shall be carried forward to set off in the future years.
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