vikas gupta (c.a final....) (714 Points)
31 October 20111. what is exactly PLANT stand for in plant and machinery,.........?
2. if nothing mentioned which method to follow mercantile or cash system of accounting in tax?
3. what is neon sign and what is current rate of depreciation on it?
4. which are metropolitan cities in india,i just want it for salary chapter in pcc....
Deepak Gupta
(CA Student)
(15922 Points)
Replied 31 October 2011
| Originally posted by : ....viru.... | ||
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1. what is exactly PLANT stand for in plant and machinery,.........? 2. if nothing mentioned which method to follow mercantile or cash system of accounting in tax? 3. what is neon sign and what is current rate of depreciation on it? 4. which are metropolitan cities in india,i just want it for salary chapter in pcc.... |
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I am not a tax expert, but would like to try to solve your queries.
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1) Plant means something, which is required for the purpose of carrying on business/enterprise. Plant must be something, which is used by the assessee in aid of the object or purpose of the business. It is not only the means of processing the end-product, but it includes the entire operation undertaken for the purpose of obtaining the end-product - CIT v. Birla Jute & Industries Ltd.
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2) The assessee has to follow either the cash or the mercantile system of accounting. The choice of the method of accounting lies with the assessee. It is also the legal position that if an assessee's method of accounts has been accepted regularly for a number of years as basis for his assessment, the AO shall not be justified if he, for any particular year, refuses to accept such method as the basis of assessment for that year. In this context, the decision of the Gujarat High Court in the case of Balapur Vibhag Jungle Kamdar Mandali Ltd. vs. CIT (1981) 22 CTR (Guj) 214 : (1982) 135 ITR 91 (Guj) may be seen.
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3) A neon sign is a lighting display made of glass tubes that have been filled with a gas and bent into the shape of letters or decorative designs. When a high-voltage electrical current is passed through the gas, the tubes emit light or you can simply say it's a glow sign advertisement medium.
Expenditure incurred on neon-sign board is a capital expenditure. Depreciation can be claimed on it @ 15%.
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4) Delhi, Mumbai, Chennai and Kolkata constitutes Metro.
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