Can company claim deduction of 32ac for installing windmill in the factory
Kowsthubha (Article Assistant) (49 Points)
20 August 2016Can company claim deduction of 32ac for installing windmill in the factory
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 20 August 2016
a) Deduction is available only to COMPANY (Indian as well as Foreign) and Company
b) must be engaged in MANUFACTURE or PRODUCTION of any article or thing.
c) value of new plant and machinery is over 25 crore or more ( earliler to finance bill 2014 limit was 100 crore or more)
if all three criteria fulfil then company can claim
Kowsthubha
(Article Assistant)
(49 Points)
Replied 20 August 2016
Depreciation on wind Mill is 80% and addditional depreciation is 20% as it is mfctr company can it claim deduction u/s 32ac
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 20 August 2016
there is no seperate valuation method, however if 100 depreciation is claimed, investment comes to zero in the year itself,
Kowsthubha
(Article Assistant)
(49 Points)
Replied 20 August 2016
Deduction under Section 32ac has been given in order to promote investment in manufacturing concerns so it is not related to wdv ....The company has invested can it claim deduction
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