can i claim addtional depreciation on new plant & machinery engaged in the business of the embroidery job work on sarees?
Whether it is in the definition in manufacture or not?
can i claim addtional depreciation on new plant & machinery engaged in the business of the embroidery job work on sarees?
Whether it is in the definition in manufacture or not?
i think doing embroidery works doesnt amounts to manufacture..not v.sure..manufacture means changing the input material into a new object or thing..you are not creating a new product/object by doing embroidery work on the textile or some object..so,you wont be able to claim additional depreciation on the asset used for embroidery work.
Agree with Mr. Gokul.
Since According to Sec 2 (29BA) of Income tax act
manufacture, with its grammatical variations, means a change in a non-living physical object or article or thing,
(a) resulting in transformation of the object or article or thing into a new and distinct object or article or thing having a different name, character and use; or
(b) bringing into existence of a new and distinct object or article or thing with a different chemical composition or integral structure;
HENCE, IN MY OPINION, THE ABOVE PROCESS IS NOT MANUFACTURE BUT JOB WORK.
sunali is correct..............
Agree with Sunali..
Additional depreciation is available for manufacturing units. Embroidery work is not covered under manufacture.
Manufacture happens only when there is a change in utility and altogether different name is given. Embroidery work is thus not a manufacture
yes
sunali says is correct. because the additional depreciation is calculated only its amounts to manufacturing. now embroidery is not a manufacturing activity. hence additional depreciation is not taken.
regards
s.phani raja kumar
advocate & tax consultant
CAclubindia
