TaxTMI 
TaxTMI 
e.g. a purchased a flat for rs. 10,00,000 on 1.4.10. he got electric installation in flat for rs. 42,000 on 5.4.10. flat was put to use on 31.05.10. can u please tell me what amount should i record under flat head @ 10% dep ? and rs. 42,000 will be included in cost of flat or it will be shown separately as electric installation @15% dep. ?
fixed assets
26 Apr 2011 
3 Replies 
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Electrical installation treatment: inclusion in asset cost versus separate furniture classification affects depreciation entitlement under income tax.
Permanent common wiring and fixed electrical installations that form part of the building should be capitalised as part of the house; separable electrical fittings and appliances should be treated as furniture and fixtures and accounted for separately for depreciation, with the timing of installation relevant but secondary to whether the work is integral to the building. (AI Summary)
Permanent common wiring and fixed electrical installations that form part of the building should be capitalised as part of the house; separable electrical fittings and appliances should be treated as furniture and fixtures and accounted for separately for depreciation, with the timing of installation relevant but secondary to whether the work is integral to the building. (AI Summary)