Whether mobile purchased by a company for its employees be treated as assets or as expenditure ?
The query should be in scene where a company purchase mobile phones ranging from Rs. 1000 to Rs. 65000 for its employees.
2 Replies
CA Prateek Garg
(CA in Practice)
(1447 Points)
Replied 04 February 2014
Mobile Handsets are Capital expense in nature hence it has to be capitlized and depreciation is to be claimed as per companies act
however as per depreciation schedule of Companies act, any asset costing below 5000/- can be depreciated @ 100% in the year of purchase.
CS V Periwal
(CS)
(80 Points)
Replied 05 February 2014
Thanks for the reply,
Problem is not of companies act, companies act provide that a higher depreciation may be charged in such a way that 95% of value is written off during its life and mobile phone's life is hardly 2-3 years.
Problem persist in the treatment under IncomeTax.
Does Income Tax department treat moile phone of any value as expenditure, or allow higher depreciation on mobile phone
Recent Topics
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
Related Threads
CAclubindia
