Industrial Buildng Allowance

Qualifying building expenditure is capital expenditure incurred on ....................

• the construction of a factory

• the purchase of building used as hostel for the factory worker

• the amount of rental expenses paid for the building used for the child care business.

• the road and car park within the factory area

Most of building falls within the "same curtilage" of a factory is an Industrial building.

Which of these building within the same cutilage in not an industrial building?

• Warehouse to store the raw materials

• Warehouse to store the fuel for the machine

• A warehouse of a retail shop

• Warehouse to store completed manufacturing goods

The 40% initial allowance given to living accommodation which are...............

• constructed building only

• constructed or purchase building

• purchase building only

• build for factory worker including the director of the company

• have the pre-requistie industrial building

Which of the following expenditure is not qualify as building expenditure?

• Cost of land

• Architect's fees

• Drainage and irrigation

• Fencing

• Stamp duty for acquiring land

75% rules is apply on the preparing site cost for the installation of the plant and machinery. Select which of the following items are preparing site cost?

• preparing

• cutting

• cost of machine

• tunneling

• levelling land

What is the treatment if the non-qualifying part of the building is at 11%?

• Treat the whole building as an industrial building

• Apportion the expenditure between the qualifying part and non-qualifying part

Annual allowance is given on what basis?

• Reducing balance basis

• Straight line basis

Initial allowance is computed on every year of assessment. State whether the statement is true of false.

• True

• False

Which of the following statements is false regarding disposal?

• No annual allowance will be computed on the year of disposal

• Balancing allowance arise when the sales proceed is more than residual expenditure

• Balancing charge arise when the sales proceed more than residual expenditure

First year of assessment for a constructed industrial building was depended on the date of........

• construction was began

• construction was completed

• the building was used as industrial business

• the signing of loan agreement to finance the construction cost