Publishing houses eligible for additional depreciation grant: CBDT
This news will come as music to the ears of publishing houses in India. The Central Board of Direct Taxes (CBDT) has issued a circular stating that publishing houses are now eligible to claim aditional depreciation on plant and machinery (over and above the normal depreciation rate).
“The Board has accepted the position that printing or publishing amounts to manufacture or production of article or thing,” said the government circular dated 19 May. The tax office communique means that publishing houses in the country can now avail an additional depreciation of 20 percent, over and above the normal depreciation rate of 15 percent, specified for plant and machinery.
The CBDT decision is based on the judgements of Delhi and Kerala High Courts on this issue. In a judgement pronounced in 16 Feb 2015, Kerala High Court (in the case of Mathrubhoomi Printing and Publishing Co) relied on Delhi High Court’s 31 May 2013 judgement (in the case of Delhi Press Patra Prakashan Ltd) to hold that printing and publishing activity is a manufacturing activity and therefore publishing houses are eligible for grant of additional depreciation under the income tax law.