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Deeps (Article Assisstant) (2485 Points)

08 October 2009

If a company purchases "Electronic Items", can that be capitalised with Plant and Machinery. If no, then under what it should be capitalised and what is the rate of depreciation under Comapnies and Income Tax Act?

Thanks in advance....

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4 Replies

(Guest)

That should be categoriged under' Office equipment' and Dep rate for this is 15% as per Income Tax Act

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Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 08 October 2009

It should be capitalised and showed under the head "Electrical Fittings". Plz refer pg no. 77 of Director tax ready recknor by Dr. V.K.Singhania. As per explanation given in point no. 5 Electrical Fittings includes electrical wiring,switches, sockets, other Fittings and Fans etc. Hence should be capitalised under Electric Fittings. The depreciation rate is 10% under income tax Act and 4.75% under the companies Act.

Best Regards,

Ratan

Saurabh Aggarwal (Chartered Accountant) (371 Points)
Replied 09 October 2009

Originally posted by :Ratan Deep Saxena
"	It should be capitalised and showed under the head "Electrical Fittings". Plz refer pg no. 77 of Director tax ready recknor by Dr. V.K.Singhania. As per explanation given in point no. 5 Electrical Fittings includes electrical wiring,switches, sockets, other Fittings and Fans etc. Hence should be capitalised under Electric Fittings. The depreciation rate is 10% under income tax Act and 4.75% under the companies Act. Best Regards, Ratan	"

Mr Saxena you are wrong because elctrical items will be grouped under Office Equipments and the applicable Dep Rate is 15%.

James (James) (22 Points)
Replied 24 February 2023

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