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Dth set top box

07 May 2013

We have purchase a Set Top Box to our employees. I have question for Can Set Top Box is book as a fixed asstes or not? if yes can you mention depriciation rate as per companies act and income tax act?

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2 Replies

Ayushi Agarwal (Article) (161 Points)
Replied 07 May 2013

you should treat it as an expenditure.... but if the set-top box is provided temporarily and it is recoverable on termination of employent with your firm, it may be treated as a Fixed Asset...the rate of depriciation being 15%...

CA JIMI S PATEL (ACCOUNT INCHARGE - GUJARAT REGION) (98 Points)
Replied 10 May 2013

"Fixed asset is an asset held with the intention of being used for

the purpose of producing or providing goods or services and is not held

for sale in the normal course of business." Para 6 of AS 10

As per defination in As 10 of Fixed Asset you can not treat set top box given to your employee as fixed asst. if it is given permenantly. Even if given on tempororly then also considering above defination we cant say that it is FA. You can treat as Staff walfare Expenses if given premenantly.