reg Dep.

This query is : Resolved

kamal (Querist)
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02 June 2010 Dear Friends

I am working with a Manufacturing unit,

and we purchase Frok Lifts for handing the material one place to another within the factory hance we treat it as Plant & machinery.
But as per our Auditors is concerned they advice it is covered under Vehicle and dep charged of Vehicle rate not plant & Machinery.

Fork lift having 4 weels hence it is Vehicle.

But on practical ground it is not a vehicle.

Please advice what is the proper head,
and what is the proper reply for auditors.

CA. B.K.BANSAL
( Expert )
28 May 2010

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It will be treated as Plant & Machinery or Tool & Equipment.
It is not vehcile.

CA. B.K.BANSAL
( Expert )
28 May 2010

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You can take example of trollies having 4 wheel, it is also tool & equipment not vechicle.

SANJAY GUPTA (M.Com, AICWA)
( Expert )
28 May 2010

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AGREE WITH MR. BANSAL

kamal
( Author )
31 May 2010
but how can i convence the auditors , because they were stick on it they need reference agaisnt it

SANJAY GUPTA (M.Com, AICWA)
( Expert )
31 May 2010

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ASK THEM TO SHOW REFERENCE OR CASE LAW IN FAVOR OF THEIR DECISION.

kamal
( Author )
31 May 2010
As per auditors opinion it was a vehicle and should be charged in vehicle head, if we need to convance them then we need case law refferance. As per practical paraliance it is a P & M . Please give me the case reff so that i would convance tham.

Thanks

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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03 June 2010 it is non-transport motor vehicle as per the
motor vehicle act and as per the income tax it should be taken as motor vehicle

"forklift" means a motor vehicle with one or more prongs or any similar mechanism for hoisting a load;

http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/26_58_07