Whether Additional Depreciation (Multiple shifts) is available under I. Tax Act, on Ocean-going ships / vessels???
13 Replies
Vishal Jhawar
(profession)
(31 Points)
Replied 26 March 2010
Additional depreciation is not allowable on ship and aircrafts as it is not an eligible plant & machinery.
C.Balaji
(Learner)
(1867 Points)
Replied 26 March 2010
I think Additional depreciation is allowed on Plant and machinery used in Factory and moreover it should not be a Second Hand machinery......and some other conditions should be satisfied to claim additonal depreciation.....
praveen
(Chartered Accountant)
(6971 Points)
Replied 26 March 2010
Any new plant and machinery used in production is eligiible 20% additional depreciation if used for more than 181 days in any previous year and at 10% if it used for less than 181 days.
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27186 Points)
Replied 26 March 2010
I Think Vessel May Be Counted as Machinery.....
Amir
(Learner)
(4016 Points)
Replied 26 March 2010
Dear Friends,
Sec 32(1)(iia) reads as follows-
in the case of any new machinery or plant (other than ships and aircraft), which has been acquired and installed after the 31st day of March, 2005, by an assessee engaged in the business of manufacture or production of any article or thing, a further sum equal to twenty per cent of the actual cost of such machinery or plant shall be allowed as deduction under clause (ii) :
Provided that no deduction shall be allowed in respect of—
(A) any machinery or plant which, before its installation by the assessee, was used either within or outside
(B) any machinery or plant installed in any office premises or any residential accommodation, including accommodation in the nature of a guest-house; or
(C) any office appliances or road transport vehicles; or
(D) any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head “Profits and gains of business or profession” of any one previous year;]
in the case of any new machinery or plant (other than ships and aircraft),
Further Unlike thecase of companies act where Higher rate of depreciation is prescribed for assets used in multiple shifts we dont have any corresponding provision under Income Tax Act.
karthikeyan.v
(Chartered Accountant)
(523 Points)
Replied 26 March 2010
hi
My learned friend AMIR has given the provision itself, which is self explainatory.
karthi
please note: Please ask Mr Amir, to change his caption from leaner, to learned, as he has answers to almost all questions
Suresh
(CA Final Student)
(177 Points)
Replied 26 March 2010
My opinion Additional Depreciation is not allowed on Ships and Vessels
MS SAMEER
(CMA*CA*CMDM*ast FUND MANAGER*LEGAL ADVISOR)
(14938 Points)
Replied 26 March 2010
My opinion Additional Depreciation is not allowed on Ships and Vessels
C.Balaji
(Learner)
(1867 Points)
Replied 26 March 2010
Dear Friends to be more brief......
Conditions for claiming additional depreciation...
a) It should be a manufacturing unit...
b) New plant and machinery should be acquired after 31.03.05.
c) Rate of Additional depreciation is 20%...
d) During the year of investment, additional dep. can be claimed.
Additional depreciation is not available in the following cases..
a) Not available for assets like building or furniture
b) Not available for assets like ships or aircrafts.......
c) Should not be a second hand machinery.
d) Machinery or plant used in any office premises or any residential premises
e) Office appliances or road transport vehicles
f) Machinery or plant where whole of the cost is allowed as deduction in one year...
anshul bafna
(student)
(522 Points)
Replied 27 March 2010
CHECK LATEST NOTES AND AMENDMENTS FOR CA FINAL
/forum/ca-final-may-2010-amendments-and-notes-for-all-subjects-75890.asp
CA Priya
(CS Final)
(1049 Points)
Replied 27 March 2010
Hey Additional Depreciation is allowed if the asset other than Ship and aircrafts is used for Business purpose........ It is not allowed if
1. Plant and machinery before installation was used inside or outside India bu any other person
2. Any Office Appliance or transport vehicle
3. P&M installed in office or residential accommodation
4. P&M whose whole cost is deductable
Decided Case law: CIT Vs Statronics Enterprises P Ltd
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 27 March 2010
| Originally posted by : karthikeyan.v | ||
 |
hi My learned friend AMIR has given the provision itself, which is self explainatory. karthi please note: Please ask Mr Amir, to change his caption from leaner, to learned, as he has answers to almost all questions |
 |
This was already conveyed by me thru private message already
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