Additional deprecation

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charudatta

auditor

113 Points Posted on 15 June 2014

Is a manufacturing company eligible for additional depreciation on following assets:-

1.Ceiling Crane used in factory.

2.Generator used for factory.

3.Paint and galvanizing (Phosphating plant), where a finished product is emersed in chemical solution for durability.

I am confused about the above mentioned items, whether they are eligible for additional depreciation or not?

Bcoz the management is of opinion that these assets do not have nexus with production. They are not charging additional depreciation.

So my query is that any plant and machinery does not having any direct relationship with production eligible for additional depreciation.

Please reply, it is very urgent. Thanks in advance

Replies (3)

JAINENDRA JAIN

ACS/CA

1264 Points Posted on 15 June 2014

Assrst are liable to depreciation. 1.they are used in factory. 2.they are not second hand purchased. 3. They are not vehicles or asset used in office.

Agree with Jainendra Jain , but I would like to add further that Additional Depreciation is only a one time event i.e. it is allowable only in year of purchase and not after that. It is restricted to 20% additional depreciation.