Pgbp
nikesh (student) (40 Points)
16 March 2016
shweta bhatter
(CA)
(173 Points)
Replied 16 March 2016
An assessee, in addition to the claim of the normal depreciation, is entitled to a claim of depreciation u/s. 32(1)(iia) (‘additional depreciation’), on purchase of new plant and machinery and installation thereof, at the rate of 20% of the actual cost of such plant and machinery that is used by the assessee in his business of manufacture or production of articles or things. Following points should be considered:
1. Any new machinery or plant (other than ship and aircraft) which has been acquired and installed by the above assessee after 31-03-2005.
2. i) Additional deprecation is available on new imported plant and machinery.
ii) It is also available on the new plant and machinery assembled by the assessee.
Besides the normal deprecation, additional depreciation shall be allowed @ 20% of the actual cost of the eligible assets in the previous year in which such assets is acquired and installed.
However, if such assets is acquired and put to use for less than 180 days in the previous year, then, the rate of depreciation shall be 50% of 20% i.e. 10%. (till AY 2015-16)
Additional deprecation is allowed only once and that too in the previous year in which the eligible asset is acquired and installed.
ii) Therefore, mere acquisition is not sufficient, the plant and machinery should be installed to be eligible for additional depreciation.
Varun Sharma
(Proprietor-Sharma Varun & Co.)
(244 Points)
Replied 16 March 2016
I agree with Ms. Shweta Bhatter
Nirmala Murali
(DGM)
(34 Points)
Replied 16 March 2016
CA Neha Gupta
(Managing Partner LNG & Associates)
(1839 Points)
Replied 16 March 2016
Abhishek S Maurya
(Student)
(42 Points)
Replied 16 March 2016
CA. Roopali Kadam
(Jobs on assignment basis.)
(1459 Points)
Replied 17 March 2016
Following third proviso shall be inserted after the second proviso to clause (ii) of sub-section (1) of section 32 by the Finance Act, 2015, w.e.f. 1-4-2016 :
Provided also that where an asset referred to in clause (iia) or the first proviso to clause (iia), as the case may be, is acquired by the assessee during the previous year and is put to use for the purposes of business for a period of less than one hundred and eighty days in that previous year, and the deduction under this sub-section in respect of such asset is restricted to fifty per cent of the amount calculated at the percentage prescribed for an asset under clause (iia) for that previous year, then, the deduction for the balance fifty per cent of the amount calculated at the percentage prescribed for such asset under clause (iia) shall be allowed under this sub-section in the immediately succeeding previous year in respect of such asset:
naveen
(CA industrial trainee)
(93 Points)
Replied 17 March 2016
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India