Depreciation Rate for The UPS - Professionals - Taxation - TIK Share
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Depreciation Rate for The UPS


Heena Golani

2014-05-29

What wil be the  Depreciation rate for ups? whether it wil be 60 % as depreciation rate applicable for computers  or 15 %-as depreciation rate applicable for ofice equipments?

As UPS is  not  integral part of computer as computer can work without UPS  and UPS can be removed from 1 compuer and put it to other computer, Depreciation rate should be 15%

CA Pulkit Sharma

2014-05-29

UPS, if purchased with computer and used in connection with computers the depreciation has to be taken at the same rates as appllicable to computers.

This decision is confirmed by High court:

The Delhi High Court, in CIT v. Orient Ceramics and Industries Ltd. [2013] 358 ITR
0049, following its own judgment in the above case, held that depreciation on UPS is
allowable @ 60%, being the eligible rate of depreciation on computers including computer
software, and not at the general rate of 15% applicable to plant and machinery.

However is UPS is purchased as stand alone and can be classified as energy saving device, then the rate of depreciation would be 80% (Block 11).

If UPS can not be classified as either of the above then the rate of depreciation would be 15% (block 5).

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