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.
28 May 2010
Plant & Machinery means equipment or machinery attached to earth. If fork Lifts is errected with land in the factory, then it will be treated as Plant & Machinery and not a vehicle.
As per Income Tax A/c Rate of depr. is same i.e 15% on Plnt & Machin as well as on Vehicle hence, it can not make any diff. in case of rate of depre.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
31 May 2010
but the problem is nominclacher of Assets, as per companies act the rate of dep. is different.
as per yours kind reffernce the trollies are also covered in vehicles but most of the companies are taken it as Plant & machinery.
CAclubindia
