What is the rate of Depreciation under Income Tax Act for Transit mixer, (Cement mixer, Concerete mixer) if its let out on hire
3 Replies
CA. RUPESH JOSHI
(Chartered Accountant)
(174 Points)
Replied 14 May 2010
| Originally posted by : SYED SHAHUL | ||
 |
What is the rate of Depreciation under Income Tax Act for Transit mixer, (Cement mixer, Concerete mixer) if its let out on hire |
 |
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)
(2574 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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