ROUTERS AND SWITCHES SHOULD BE CLASSIFIED AS PART OF COMPUTERS AND BE ELIGIBLE FOR 60% DEPRECIATION
In a recent decision, Special Bench (SB) of the Mumbai Income Tax Appellate Tribunal in the case
of Data craft India Ltd. (Taxpayer) on the issue of whether routers and switches can be classified as
computer entitled to depreciation at 60% or have to be classified as general plant and machinery entitled to depreciation at 25%, under the provisions of the Indian Tax Laws (ITL) has held that the definition of computer should not be restricted to the central processing unit (CPU) of computer, but should also extend to all the input and output devices which support computer in the receipt of input and outflow of output to and from computer. In view of the broader definition given to computers, routers and switches, also form part and parcel of computer. Thus, when a device is used as part of the Computer in its functions, then it would be termed as a Computer, and accordingly entitled to higher deprecation of 60%.
of Data craft India Ltd. (Taxpayer) on the issue of whether routers and switches can be classified as
computer entitled to depreciation at 60% or have to be classified as general plant and machinery entitled to depreciation at 25%, under the provisions of the Indian Tax Laws (ITL) has held that the definition of computer should not be restricted to the central processing unit (CPU) of computer, but should also extend to all the input and output devices which support computer in the receipt of input and outflow of output to and from computer. In view of the broader definition given to computers, routers and switches, also form part and parcel of computer. Thus, when a device is used as part of the Computer in its functions, then it would be termed as a Computer, and accordingly entitled to higher deprecation of 60%.
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