Mohd. Hammad (CA Article ) (103 Points)
15 June 2012
Hello everyone,
Do anybody confirm that the IPAD and Printers (multipurpose) capitalized under which head??
a) Computers
b) Office equipments
Please clarify!!
Regards,
Hammad
Hemant Kumar
(Accounts Manager MBA (Fin) CMA*)
(6450 Points)
Replied 15 June 2012
Bhanu Prakash Rao
(Think Beyond Stay Ahead...!)
(1064 Points)
Replied 15 June 2012
Hi
I agree with Hemanth
If you are a Company you have to clasify it as per Revise Schedule VI and above said item will come under COMPUTER HARDWARE.
abbili nagaraju
(CA Final Articleship)
(88 Points)
Replied 15 June 2012
it depends on ur business and in normal cases it will come under office equipments
Mohd. Hammad
(CA Article )
(103 Points)
Replied 15 June 2012
Thanks for your views guys...
it is a company related to PHARMA industry...
now give your views accordingly.
Also there is GOD'S Murti situated at the entrance of office building..in which head it covers??
Kindly give ur views as per COMPANIES ACT and as per INCOME TAX ACT related to all 3 assets
Roshan A
(Chartered Accountant)
(458 Points)
Replied 15 June 2012
I think you should capitalise the IPad & Printers under the head "Computers & Printers"
and in case of God's Murti,it cannot be Asset as its not being used for production of goods or rendering of service.Thus it should be taken as general office expenses and not as an asset.
Mohd. Hammad
(CA Article )
(103 Points)
Replied 15 June 2012
Thanx for your views Mr. Roshan.
However in my views:-
There in no head "computes and printers" combind in companies act or income tax act.
Multipurpose Printers are capable to work and bring output with or without computers, hence they should be covered under Office equipments and depreciate @ 13.91% as per companies act.
Tha same will be done for IPADS.
but I want more support for my views or any other views alongwith support.
And for God's Murti:- i am totally agrees with your views. but in any case if we have to capitalise the same as asset, under which head we can capitalize and what the rate of depreciation charge??
Waiting for your valuable inputs everyone!!
Thanx for your knowledge share..
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 16 June 2012
it should go under the head computer
siva
(articled assistant)
(31 Points)
Replied 16 June 2012
hello friends
i give my choice to office equipments
Dinesh
(AGM)
(48 Points)
Replied 16 June 2012
hello,
it should be capitalised under the office equipement not in computer because computer is a data processing machine where as printer and ipad is the only use for output generation either to connect with computer or without computer, it is not prosess the data independently.
Dinesh Baldua
Mohammed Zafrulla
(SENIOR EXECUTIVE ACCOUNTS)
(21 Points)
Replied 17 June 2012
under the head computer & printer or only computers
m.h.makhdoomi
(Br Head)
(29 Points)
Replied 17 June 2012
dear you both are not correct. in co act the policy of accounting is to be disclosed. then if computers are taken to P&M/computers, the dep has to be atb 33.33%.
the gods maruti is a revenue expense and company can not declare dividend unless its is appropriated
is it ok
CA Himanshu Bansal
(Risk Manager)
(2345 Points)
Replied 17 June 2012
Go with capitalisation under "Office Equipments" Head .
Jatin Singh Negi
(Country Analyst )
(505 Points)
Replied 17 June 2012
As per Income Tax Act:
1 IPAD will be under Office Euipment
2. Printer be it multipurpose, it would come in Computer Head
3. God's Murthi will be capitalised with Building.
C CHETAN
(SENIOR ACCOUNTANT )
(21 Points)
Replied 18 June 2012
It should be capitalised under the head of Computer & Printer,
Regards
C Chetan.
CAclubindia
