You are required to compute the correct amount of depreciation on plant and machinery (Block: 15%) for the A.Y. 2026-27, including any additional…

Computation of depreciation on plant and machinery (Block 15%) for the A.Y. 2026-27 Particulars Amount (in crore) WDV as on 1.4.2025 120 Add: Cost of new machinery and equipment acquired on 10.8.2025 including freight and installation charges 2.55 Add: Cost of imported tea sachet forming machinery put to use 25.3.2026 [Refer Note Below] 0.45 Less: Insurance receipts for loss of machinery in fire 1.40 Add: Cost of equipment provided by insurance company Nil WDV as on 31.3.2026 121.60 Depreciation @15% x 50% on 3 cr (2.55 cr. +0.45 cr.) since the asset put to use for less than 180 days 0.225 Depreciation @15% on 118.60 crores 17.79 Additional depreciation @20% x 50% on 3 crores 0.30 Total depreciation for P.Y. 2025-26 18.315 Note: Computation of actual cost of imported tea sachet forming machinery Particulars Amount (₹) Purchase Price [Computed in Q 1.7, being the cost-effective strategy] 31,06,079 Add: Cost would be increased with the following: Increase in FOB price by 3% i.e., Euro 900 x 107 96,300 Total Purchase Price 32,02,079 Freight [Euro 5,000 x 107] 5,35,000 Insurance [Euro 400 x 107] 42,800 Commission paid to local agent 1,61,300 Freight Charges paid to local transport 1,05,850 Basic Custom Duty @10% computed on assessable value of 41,18,000 plus Social Welfare surcharge @10% of 4,11,800 [Refer: MCQ 1 for this purpose] 4,52,980 Integrated GST [Not to be added since ITC can be claimed in respect of it] Nil Actual Cost 45,00,309