Additional depreciation of ready mix concrete mixing machine

Tax queries 2082 views 1 replies

 

Dear all,

Based on the provisions of Section 32(iia) of the Income Tax Act which allows for higher depreciation allowance under certain circumstances for machinery or plant acquired or installed after 01.04.2005 in the business of manufacture of a article or thing.
 

My Client is manufacturer of Ready Mix Concrete. Nature of activity is purchase of sand and metal and cement and flyash and then mix these things through machinery and then supply to the customers. Whether my client is eligible for additional depreciation or not.  

It most urgent and clarfy the same as soon as possible.

S.Mohan

Audit Assistant

Replies (1)

1) Please confirm whether the activity carried out by your Client amounts to Manufacture.

2) If yes, then see that the Machinery purchased is a New one.

3) If the above two conditions are fulfilled then you are eligible to claim Additional Depreciation as per the Income Tax Act, 1961.

 

 

 

Regards,

Devendra Kulkarni


CCI Pro

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