How is the value of plant & machinery computed?
Broadly speaking, the following points may be kept in mind while computing value of plant and machinery: i. Consider original price irrespective of whether the machinery is new or second hand. ii. Exclude cost of land and building. iii. Exclude cost of pollution control equipment, generator sets, bank charges, cable, storage tanks and fire fighting equipment. iv. Exclude cost of installation, wiring, transportation charges, and charges for technical know-how. v. For imported machinery include import duty, shipping charges and custom clearance charges.
