Rate of depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2015 One of my client is owner of Heavy vehicle. He had purchased new battery for vehicle.
I want to know whether Battery is liable for depreciation, if yes then at which rate?

Thank you in advance

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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11 March 2015 battery is not a capital asset hence no depreciation on same is allowed but only on vehicle used.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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11 March 2015 Battery used in heavy vehicle should be capitalized. Depreciation can be claimed as per Income Tax Act 1961 @ 33.40%.

Depreciation rate chart as per Companies Act 1961 may kindly be seen.

You can also check out the depreciation rates as per Income Tax Act 1961 from links given below:

http://taxguru.in/income-tax/rates-of-depreciation-as-per-income-tax-act-for-a-y-2010-11.html

http://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?path=http://www.incometaxindia.gov.in/charts%20%20tables/depreciation%20rates.htm&k=&IsDlg=0

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Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2015 Dear Sanjay Gupta,
Depreciation at rate of 33.4% is available on batteries only for Power Generating Units as per your links, that you posted here.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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11 March 2015 Other than power generating Unit depreciation will be available @ 15% under Plant & Machinery category. But yes battery will be liable for depreciation as it is a capital item and can not be charged to revenue.