00:02
We have to find the total capital allowance to be claimed by ubuntu pty ltd on the machine 42 ,023 year of assessment.
00:13
So in south africa, the capital allowance for machinery and plant is calculated based on the wear and tear allowances.
00:20
The wear and tear allowances determined by applying the prescribed wear and tear rates to the cost of machinery or plant.
00:28
So the wear and tears are provided.
00:34
Here's rates are provided in the 8th schedule to the income tax act.
00:55
So the rates depend on the nature of the asset and the year in which it was brought into use.
01:01
So manufacturing machinery the year, sorry the wear and tear rate is generally 15 % per annum.
01:18
So now let's calculate the capital allowance for the manufacturing machine 42 ,023 year of assessment.
01:24
So cost of machine is equal to rs.
01:33
6 ,70 ,000 wear and tear rate is equal to 15 % then capital allowance for machine is equal to cost multiplied by wear and tear rate is equal to putting the values rs.
02:00
Rs...