Data Network Cables - Whether Plant and Machinery

[sathyanarayanan kasinathan]

Whether Data Networking cables can be classified as plant and machinery alongwith Routing equipments under the  Income Tax Act classifications. Whether any decisions available.

[Surender Gupta]

In my view, the same should be considered as capital asset if in the nature of new setup and development of system. Otherwise it may fall under current repairs.

AI Summary

Classification of data network cables as plant and machinery: capitalised when part of a new system, otherwise treated as repairs. Where data network cables form part of a new setup or the development of an integrated data networking system, they should be treated as capital assets and classified alongside routing equipment; otherwise, cables installed as replacements, routine maintenance, or minor works may be treated as current repairs and expensed.