Vinny (CA [Self-Employed]) (101 Points)
24 February 2016
Prateek
(Partner)
(143 Points)
Replied 24 February 2016
Normal concept is that if a spare part increases the capacity or life of the product then its added to the cost of the asset, otherwise treated as revenue expense.
So you can add it to the cost of the computer and charge depreciatio on it.
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 18 March 2016
In my opinion, Switch Mode Power Supply does not increase capacity of System where as R.A.M absolutely add capacity to system which enable you to do process faster and efficiency. Therefore cost of Switch Mode Power Supply can not be capitalized and can be claimed as expense for I.T purpose but R.A.M cost can be added to COMPUTER BLOCK and claim depreciation on it u/s.32
CAclubindia
