What is the rate of Depreciation under Income Tax Act for Transit mixer, (Cement mixer, Concerete mixer) if its let out on hire
CA .SYED SHAHUL (CHARTERED ACCOUNTANT) (34 Points)
13 May 2010What is the rate of Depreciation under Income Tax Act for Transit mixer, (Cement mixer, Concerete mixer) if its let out on hire
CA. RUPESH JOSHI
(Chartered Accountant)
(174 Points)
Replied 14 May 2010
| Originally posted by : SYED SHAHUL | ||
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What is the rate of Depreciation under Income Tax Act for Transit mixer, (Cement mixer, Concerete mixer) if its let out on hire |
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Syed,
Sec. 32(1) read with Rule 5 states that the asset should actually be used for the purpose of the assessee's business or profession.
Since you have let out the assets, you cannot claim depreciation on them. ( Exception to the above are motor casr , buses used in the business of running them on hire)
As for the Dep. rates, you may treat the above assets under Plant & Machinery on which the rate is 15%
Max Payne
(employed)
(2569 Points)
Replied 14 May 2010
Hi Syed,
The rate of depreciation is 15% as P&M......
You need to assess if the taxability is as PGBP or IFOS.
Under both heads depreciation is allowed.
Under PGBP, it is allowed u/s 32 and under IFOS is allowed u/s 57.
CA Saurabh Shukla
(Accounts Executive)
(223 Points)
Replied 14 May 2010
Rupesh ji,
1 Q from you, Whether Letting out of P& M is not a business and if we let out P&M , it is not for our business purpose.
Mr. Syed, In the case u can claim dep. on Mixer at 15% add additional dep. 20% if it is new in its 1st year.
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