depreciation rates as per i.t act for most commonly used assets - taxadda

depreciation rates as per i.t act for most commonly used assets - taxadda

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2. A building shall be deemed to be a building used mainly for residential purposes, if the built-up floor area thereof used for residential purposes is not less than sixty-six and two-third per cent of its total built up floor area and shall include any such building in the factory premises.

3. In respect of any structure or work by way of renovation or improvement in or in relation to a building referred to in Explanation 1 of clause (ii) of sub-section (1) of section 32, the percentage to be applied will be the percentage specified against sub-item (1) or (2) of item I as may be appropriate to the class of building in or in relation to which the renovation or improvement is effected. Where the structure is constructed or the work is done by way of extension of any such building, the percentage to be applied would be such percentage as would be appropriate, as if the structure or work constituted a separate building.

6. Commercial vehicle means heavy goods vehicle, heavy passenger motor vehicle, light motor vehicle, medium goods vehicle and medium passenger motor vehicle but does not include maxi-cab, motor-cab, tractor and road-roller. The expressions heavy goods vehicle, heavy passenger motor vehicle, light motor vehicle, medium goods vehicle, medium passenger motor vehicle, maxi-cab, motor-cab, tractor and roadroller shall have the meanings respectively as assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988).

10. Speed boat means a motor boat driven by a high speed internal combustion engine capable of propelling the boat at a speed exceeding 24 kilometres per hour in still water and so designed that when running at a speed, it will plane, i.e., its bow will rise from the water.

what is ebitda - formula, calculation, and use cases

what is ebitda - formula, calculation, and use cases

EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's overall financial performance and is used as an alternative to net income in some circumstances. EBITDA, however, can be misleading because it strips out the cost of capital investments like property, plant, and equipment.

This metric also excludes expenses associated with debt by adding back interest expense and taxes to earnings. Nonetheless, it is a more precise measure of corporate performance since it is able to show earnings before the influence of accounting and financial deductions.

Simply put, EBITDA is a measure of profitability. While there is no legal requirement for companies to disclose their EBITDA, according to the U.S.generally accepted accounting principles(GAAP), it can be worked out and reported using the information found in a company'sfinancial statements.

The earnings, tax, and interest figures are found on the income statement, while the depreciation and amortization figures are normally found in the notes to operating profit or on the cash flow statement. The usual shortcut to calculate EBITDA is to start with operating profit, also calledearnings before interest and tax (EBIT) and then add back depreciation and amortization.

EBITDA = NetIncome + Interest + Taxes + D + A where: D = Depreciation A = Amortization \begin{aligned} &\textit{EBITDA} = \text{Net Income} + \text{Interest} + \text{Taxes} + \text{D} + \text{A} \\ &\textbf{where:} \\ &\text{D} = \text{Depreciation} \\ &\text{A} = \text{Amortization} \\ \end{aligned} EBITDA=NetIncome+Interest+Taxes+D+Awhere:D=DepreciationA=Amortization

EBITDA = OperatingProfit + DE + AE where: DE = Depreciationexpense AE = Amortizationexpense \begin{aligned} &\textit{EBITDA} = \text{Operating Profit} + \text{DE} + \text{AE} \\ &\textbf{where:} \\ &\text{DE} = \text{Depreciation expense} \\ &\text{AE} = \text{Amortization expense} \\ \end{aligned} EBITDA=OperatingProfit+DE+AEwhere:DE=DepreciationexpenseAE=Amortizationexpense

EBITDA first came to prominence in the mid-1980s asleveraged buyoutinvestors examineddistressed companiesthat needed financialrestructuring. They used EBITDA to calculate quickly whether these companies could pay back the interest on these financed deals.

Leveragedbuyoutbankers promoted EBITDA as a tool to determine whether a company could service its debt in the near term, say over a year or two. Looking at the company'sEBITDA-to-interest coverage ratio(in theory, at least) would give investors a sense of whether a company could meet the heavier interest payments it would face after restructuring. For instance, bankers might argue that a company with EBITDA of $5 million and interest charges of $2.5 million had interest coverage of two more than enough to pay off debt.

EBITDA was a popular metric in the 1980s to measure a company's ability to service the debt used in a leveraged buyout (LBO). Using a limited measure of profits before a company has become fully leveraged in an LBO is appropriate. EBITDA was popularized further during the "dot com" bubble when companies had very expensive assets and debt loads that were obscuring what analysts and managers felt were legitimate growth numbers.

The use of EBITDA has since spread to a wide range of businesses. Its proponents argue that EBITDA offers a clearer reflection of operations by stripping out expenses that can obscure how the company is really performing.

EBITDA is essentially net income (or earnings) with interest, taxes, depreciation, and amortization added back. EBITDA can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures. EBITDA is often used in valuation ratios and can be compared to enterprise value and revenue.

Interest expenses and (to a lesser extent) interest income are added back to net income, which neutralizes the cost of debt, as well as the effect interest payments, have on taxes. Income taxes are also added back to net income, which does not always increase EBITDA if the company has a net loss. Companies tend to spotlight their EBITDA performance when they do not have very impressive (or even positive) net income. It's not always a telltale sign of malicious market trickery, but it can sometimes be used to distract investors from the lack of real profitability.

Companies use depreciation and amortization accounts to expense the cost of property, plants, and equipment, or capital investments. Amortization is often used to expense the cost of software development or other intellectual property. This is one of the reasons that early-stage technology and research companies feature EBITDA when communicating with investors and analysts.

Management teams will argue that using EBITDA gives a better picture of profit growth trends when the expense accounts associated with capital are excluded. While there is nothing necessarily misleading about using EBITDA as a growth metric, it can sometimes overshadow a company's actual financial performance and risks.

EBITDA does not fall under generally accepted accounting principles(GAAP) as a measure of financial performance. Because EBITDA is a "non-GAAP" measure, its calculation can vary from one company to the next. It is not uncommon for companies to emphasize EBITDA over net income because it is more flexible and can distract from other problem areas in the financial statements.

An important red flag for investors to watch is when a company starts to report EBITDA prominently when it hasn't done so in the past. This can happen when companies have borrowed heavilyor are experiencing rising capital and development costs. In this circumstance, EBITDA can serve as a distraction for investors andmay be misleading.

A common misconception is that EBITDA represents cash earnings. However, unlike free cash flow, EBITDA ignores the cost of assets. One of the most common criticisms of EBITDA is that it assumes that profitability is a function of sales and operations alone almost as if the assets and financing the company needs to survive were a gift.

EBITDA also leaves out the cash required to fund working capital and the replacement of old equipment. For example, a company may be able to sell a product for a profit, but what did it use to acquire the inventory needed to fill its sales channels? In the case of a software company, EBITDA does not recognize the expense of developing the current software versions or upcoming products.

While subtracting interest payments, tax charges, depreciation, and amortization from earnings may seem simple enough, different companies use different earnings figures as the starting point for EBITDA. In other words, EBITDA is susceptible to the earnings accounting games found on the income statement. Even if we account for the distortions that result from interest, taxation, depreciation, and amortization, the earnings figure in EBITDA is still unreliable.

Consider the historical example of wireless telecom operator Sprint Nextel. April 1, 2006, the stock was trading at 7.3 times its forecast EBITDA. That might sound like a low multiple, but it doesn't mean the company is a bargain. As a multiple of forecast operating profits, Sprint Nextel traded at a much higher 20 times. The company traded at 48 times its estimated net income. Investors need to consider other price multiples besides EBITDA when assessing a company's value.

Earnings before interest,taxes, depreciation, and amortization (EBITDA) adds depreciation and amortization expenses back into a company's operating profit. Analysts usually rely on EBITDA to evaluate a company's ability to generate profits from sales alone and to make comparisons across similar companies with different capital structures. EBITDA is a non-GAAP measure and can sometimes be used intentionally to obscure the real profit performance of a company.

The measurement's sometimes bad reputation is mostly a result of overexposure and improper use. Just as a shovel is effective for digging holes, it wouldn't be the best tool for tightening screws or inflating tires. Thus, EBITDA shouldn't be used as a one-size-fits-all, stand-alone tool for evaluating corporate profitability. This is a particularly valid point when one considers that EBITDA calculations do not conform to generally accepted accounting principles (GAAP).

Like any other measure, EBITDA is only a single indicator. To develop a full picture of the health of any given firm, a multitude of measures must be taken into consideration. If identifying great companies was as simple a checking a single number, everybody would be checking that number, and professional analysts would cease to exist.

EBIT(earningsbeforeinterest andtaxes) is a company's net income before income tax expenseand interest expense have been deducted.EBIT is used to analyze the performance of a company's core operations without tax expenses and the costs of the capital structureinfluencing profit. The following formula is used to calculate EBIT:

EBIT = NetIncome + InterestExpense + TaxExpense \textit{EBIT} = \text{Net Income} + \text{Interest Expense} + \text{Tax Expense} EBIT=NetIncome+InterestExpense+TaxExpense

Since net income includes the deductions of interest expense and tax expense, they need to be added back into net income to calculateEBIT.EBIT is often referred to as operating income since they both exclude taxes andinterest expensesin their calculations. However, there are times when operating income can differ from EBIT.

Earnings before tax (EBT)reflects how muchof an operating profithas been realized before accounting for taxes, while EBITexcludes both taxes and interest payments. EBTis calculated by takingnet incomeand addingtaxes back in to calculate a company's profit.

By removingtax liabilities, investors can use EBT to evaluate a firm's operating performance after eliminating a variable outside of its control. In the United States, this is most useful for comparing companiesthat might havedifferent state taxes or federal taxes. EBT andEBIT are similar to each other and are bothvariations of EBITDA.

Sincedepreciation is not captured in EBITDA, it can lead toprofit distortions forcompanieswith a sizableamount offixed assets and subsequently substantial depreciation expenses. The larger the depreciation expense, the more it will boost EBITDA.

Operating cash flowis a better measure of how much cash a company is generating because it adds non-cash charges (depreciation and amortization) back to net income and includes the changes inworking capitalthat also use or provide cash (such as changes in receivables, payables, and inventories).

These working capital factors are the key to determining how much cash a company is generating. If investors do not include changes in working capital in their analysis and rely solely on EBITDA, they will miss clues that indicate whether a company is struggling with cash flow because it's not collecting on its receivables.

A retail company generates $100 million in revenue and incurs $40 million in production costand $20 million in operating expenses. Depreciation and amortization expenses total $10 million, yielding an operating profit of $30 million. Interest expense is $5 million, which equals earnings before taxes of $25 million. With a 20%tax rate, net income equals $20 million after $5 million in taxes are subtracted from pre-tax income. If depreciation, amortization, interest, and taxes are added back to net income, EBITDA equals $40 million.

Many investors use EBITDA to make comparisons between companies with different capital structures or tax jurisdictions. Assuming that two companies are both profitable on an EBITDA basis, a comparison like this could help investors identify a company that is growing more quickly from a product sales perspective.

For example, imagine two companies with different capital structures but a similar business. Company A has a current EBITDA of $20,000,000 and Company B has EBITDA of $17,500,000. An analyst is evaluating both firms to determine which has the most attractive value.

From the information presented so far, it makes sense to assume that Company A should be trading at a higher total value than Company B. However, once the operational expenses of depreciation and amortization are added back in, along with interest expense and taxes, the relationship between the two companies is more clear.

In this example, both companies have the same net income largely because Company B has a smaller interest expense account. There are a few possible conclusions that can help the analyst dig a little deeper into the true value of these two companies:

EBITDA is a measure of a company's financial performance and profitability, so relatively high EBITDA is clearly better than lower EBITDA. Companies of different sizes in different sectors and industries vary widely in their financial performance. Therefore, the best way to determine whether a company's EBITDA is "good" is to compare its number with that of its peerscompanies of similar size in the same industry and sector.

As it relates to EBITDA, amortization is an accounting technique used to periodically lower the book value of intangible assets over a set period of time. Amortization is reported on a company's financial statements. Examples of intangible assets include intellectual property such as patents or trademarks, or goodwill derived from past acquisitions.

the cryptocurrency miner's guide to taxes | cryptoslate

the cryptocurrency miner's guide to taxes | cryptoslate

Essentially, if you have a mining rig and are seriously involved in cryptocurrency mining, then you can argue that you are a business. If you casually mine cryptocurrency on a home computer, it is probably a hobby.

Cryptocurrency earned as part of a hobby, then it is considered income with a few limited deductions. Meanwhile, if you earned the income as part of a business, then your income is the fair-value of the mined cryptocurrency less any qualifying expenses.

If you mine as a hobby, then it is treated as ordinary income, taxed at your marginal tax rate. This is treated as any other kind of earned income. Refer to the table below to determine which bracket your mining income falls under:

To calculate daily revenue take the amount mined in that day and multiply it by the trading price on a reputable exchange to find your daily revenue. Note that you may use the open, close, or average price so long as you are consistent.

Then, qualifying business expenses such as depreciation are also subtracted from this amount. So for example, if you assume a $500 1070Ti will last you two years, and you will be able to sell it for $250 at the end of the two years, then depreciation for the month is as follows:

Apply a depreciation estimate on a regular schedule to all of your equipment. You may use this to reduce the taxes payable on any of your crypto-mining earnings. After this amount is calculated, factor in self-employment taxes.

If you are mining as a business and havent incorporated, you are then treated as anunincorporated sole proprietorship. Any income earned by an unincorporated sole proprietorship is passed-through and added to your personal income.

A partnership is similar to a sole proprietorship, in that it is a pass-through entity. The added benefits of a partnership are that you can structure the agreement between you, and two or more people, in a way that creates different treatments for each person.

The downside is that a partnership has limited ability to create stock, or ownership units in the case of a partnership. Ownership units are more cumbersome to transfer and require more legal legwork to create properly. All of these factors make raising outside investment more difficult.

An S-Corp is a corporation that elects to pass corporate income through to the owners. Owners of an S-Corp report income and losses on their personal tax returns and are assessed taxes at their individual income tax rates, thus avoiding double taxation.

To elect taxation as an S-Corp, you need to fulfill a couple of different criteria. Moreover, S-Corporations are limited in that they can only create two types of stock, voting, and non-voting. For more information, refer to the IRS guide on business structures.

If youre a business and you make a payment of $600 or more to an independent contractor for work, then you are required to report that payment to the IRS and tender the payee a 1099-Misc, and vice-versa if you receive such a payment.

Involvement in the crypto-mining is a fantastic way to increase your income. However, making sure you are on the right side of the IRS is crucial, especially as the government implements more regulation and oversight in the space.

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

Berlin, Germany, 9th July, 2021, SMT will power liquidity on Swarm Markets Community to set SMT price Berlin-based Swarm Markets today announces it will launch its first token, SMT, to power liquidity on the worlds first BaFin-regulated DeFi exchange.

Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy Policy. CryptoSlate has no affiliation or relationship with any coin, business, project or event unless explicitly stated otherwise. CryptoSlate is only an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence before making any investment decisions. CryptoSlate is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.

treatment of expenditures in canada | mining tax canada

treatment of expenditures in canada | mining tax canada

Canada Revenue Agency Revises Administrative Policy on Obtaining Taxpayer Information The CRAs recent revision of its administrative policy on obtaining taxpayer information and the FCA decision in Cameco dealing with the CRAs ability to require taxpayers to submit to oral interviews are discussed here in this article from Tax Notes International. Read more CRA Provides Guidance on CCE Eligibility for expenses on community consultation or environmental studies In a recent technical interpretation, the Rulings Directorate of the Canada Revenue Agency reviewed the circumstances in which expenses related to community consultations or environmental studies may qualify as Canadian exploration expenses. Read more

Major Transfer Pricing Victory for Canadian Miner The Tax Court of Canada has handed Cameco Corporation a major win in its long-running transfer pricing dispute with Canadian tax authorities, in a case with over $2 billion at stake. Read more

Governments Fall Economic Statement Positive for Canadas Mining Sector In its November 21 2018 Fall Economic Statement, the government of Canada announced a number of important measures that will significantly benefit Canadas mining sector. Amongst the most important changes for the mining sector are the following: Read more

OECD and IFG Release Practice Notes on BEPS Risks in Mining On October 19, 2018, the Organization for Economic Cooperation & Development and the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development released a series of three Practice Notes addressing some of the challenges faced by developing countries in taxing the mining sector. Read more

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Accessing or using this website does not create a lawyer-client relationship or the provision of legal advice. Any information sent to us by e-mail through this website is not confidential and does not constitute or create a lawyer-client relationship. Persons seeking legal advice should contact a duly-qualified lawyer in the relevant jurisdiction to discuss their particular circumstances. All material on this site is copyright 2010 Steve Suarez, and may not be reproduced in any form for commercial purposes without our express written consent.

latest depreciation rates as per income tax act and companies act - faceless compliance

latest depreciation rates as per income tax act and companies act - faceless compliance

Depreciation on assets is covered under section 32 of the Income tax act. In order to claim depreciation the asset should be used for business or profession and assesse should be owner of such asset. Depreciation on asset is allowed only if assesse is beneficial owner. In case of lease, depreciation is always claimed by lessor whether it is financial lease or operating lease. In case of hire purchase, assesse gets the ownership only after payment of last installment but he can claim depreciation from beginning, assuming assesse is the owner from beginning. Depreciation on asset partially owned by the assesse shall be allowed to him to t extent of his share in asset. In case of stand by machinery and emergency spares, the depreciation shall be allowed even if they are ready for use and not to put use. In this article we will learn about the rates of depreciation on various assets as per Income tax act.

2.A building shall be deemed to be a building used mainly for residential purposes, if the built-up floor area thereof used for residential purposes is not less than sixty-six and two-third per cent of its total built-up floor area and shall include any such building in the factory premises.

3.In respect of any structure or work by way of renovation or improvement in or in relation to a building referred to inExplanation 1of clause (ii) of sub-section (1) ofsection 32, the percentage to be applied will be the percentage specified against sub-item (1) or (2) of item I as may be appropriate to the class of building in or in relation to which the renovation or improvement is effected. Where the structure is constructed or the work is done by way of extension of any such building, the percentage to be applied would be such percentage as would be appropriate, as if the structure or work constituted a separate building.

6.Commercial vehicle means heavy goods vehicle, heavy passenger motor vehicle, light motor vehicle, medium goods vehicle and medium passenger motor vehicle but does not include maxi-cab, motor-cab, tractor and road-roller. The expressions heavy goods vehicle, heavy passenger motor vehicle, light motor vehicle, medium goods vehicle, medium passenger motor vehicle, maxi-cab, motor-cab, tractor and road-roller shall have the meanings respectively as assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988).

10.Speed boat means a motor boat driven by a high speed internal combustion engine capable of propelling the boat at a speed exceeding 24 kilometers per hour in still water and so designed that when running at a speed, it will plane,i.e.,its bow will rise from the water.

tanzania - corporate - deductions

tanzania - corporate - deductions

In calculating taxable profit, deductions are allowed for revenue expenditures incurred wholly and exclusively in the production of income, with some statutory exceptions. For capital expenditures, there are specific tax depreciation allowances.

Expenditures on plant and machinery are generally written off on a reducing-balance basis at rates of 37.5%, 25%, or 12.5%, depending on the category of the asset. Certain plant and machinery for manufacturing, fish farming, and tourist hotels benefit from a 50% allowance in the first year, with the normal rates applying to the remaining balance in subsequent years. There is an immediate write-off of expenditures on plant and machinery used in agriculture.

Apart from the immediate write-off of plant and machinery, agricultural businesses also benefit from the immediate write-off of agricultural improvement expenditures (including the costs of clearing land, excavating irrigation channels, and planting perennial crops or tree bearing crops). Buildings, structures, dams, water reservoirs, fences, and similar works of a permanent nature used in agriculture, livestock, or fish farming are written off on a straight-line basis over five years.

Start-up expenses are deductible to the extent that they meet the general deduction criteria (i.e. they are revenue in nature and were incurred wholly and exclusively in the production of income). The definition of 'business' includes a prospective business.

In order to claim relief for a bad debt, it is necessary to demonstrate that all reasonable steps have been taken to pursue payment and that there is a reasonable belief that the debt claim will not be satisfied.

Tax losses can be carried back only in long-term contracts in a case where a contract is completed and a person has unrelieved losses for that period or a previous period that is attributable to the long-term contract. These losses can then be carried back to a previous year of income and treated as unrelieved loss for that year.

Payments to foreign affiliates are deductible to the extent they are wholly and exclusively incurred in the production of the company's income. The deduction is subject to transfer pricing provisions as detailed in the Group taxation section.

2017 - 2021 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

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