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Deemed plant & machinery

Tax queries 433 views 1 replies

Dear Members,

Are there any Provisions for Plant or Furniture which are similar to the Concept of "Deemed building" under Explanation-1 to Sec-32 under the IT Act? If not then how will the capital expenditure made by a person on Plant which is taken on rent by him be dealt with under the IT Act?

Regards,
Souvik Ghosh

Replies (1)
Dear Ghosh it is very difficult as there is no such concept in case of rental p&m. You should take it as revenue exp in p&l. Can consider it as repairs and maintenance expenses. If you think the amount will effect your profits then please do consult it with your c.a. Regards


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