Concerned over the proposal to limit the number of 100 per cent depreciation-allowed items, the Associated Chambers of Commerce and Industry (Assocham) has said a broad grouping should be followed for retaining 100 per cent depreciation items as it is.
The chamber, in a release said, if the proposal to reduce the 100 per cent depreciable items was carried out, then it should exclude pollution control equipment and energy saving devices.
The chamber also came down on the proposal to halve the depreciation on tangible assets to 10 per cent, saying the hospitality industry would be hard hit since the wear and tear of hotel buildings was far more than normal office buildings. “The present proposal to reduce the depreciation rate from 20 per cent to 10 per cent is totally unjust and unwarranted,” it said.
Assocham also opposed the move to cut the depreciation on intangible assets, including know-how, to 15 per cent from the present 25 per cent, saying it would take longer time to claim 95 per cent of the expenditure incurred and therefore the said proposal was not acceptable.