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.

[Ganeshan Kalyani]

Sir, if you claim ITC you cannot capitalize the GST component. If you want to claim depreciation then do not take ITC.

In my view, the rate of depreciation on mobile is 15%.

[YAGAY andSUN]

Depreciation rate under company's act for plant & machinery is 13.91 % (mobile taken as plant & machinery) as per income tax act 15%. Since you are a proprietary firm, therefore it will be 15% depreciation on the Mobile Phone.

[Ashish Agarwal]

Thank you all

AI Summary

Depreciation on mobile phones treated as plant and machinery; cannot claim GST input credit if GST is capitalised. Depreciation for a mobile phone used in a proprietary business is calculated by treating the phone as plant and machinery with the income tax depreciation rate of fifteen percent; a taxpayer who claims input tax credit on the GST paid cannot capitalise the GST component into the depreciable asset base for claiming depreciation.