Rate of depreciation on mobile phone

[Ashish Agarwal]

I have included my new mobile phone in my proprietary business as a fixed asset ( i even bought it in the name of my firm)

What shall be the rate of depreciation? Will be 15%(plant and machinary) or 40%(computers)?

I shall also be claiming ITC on the gst paid on buying this phone? I Hope i am eligible for it.

AI Summary

Business Owner Seeks Advice on Depreciation Rate and GST Input Tax Credit for New Mobile Phone as Fixed Asset A business owner included a new mobile phone as a fixed asset in their proprietary business and sought advice on the applicable depreciation rate and eligibility for claiming Input Tax Credit (ITC) on GST paid. One respondent advised that if ITC is claimed, the GST component cannot be capitalized, suggesting a 15% depreciation rate. Another confirmed that for a proprietary firm, the depreciation rate under the Income Tax Act is 15% for mobile phones classified as plant and machinery. The owner expressed gratitude for the guidance received.