RATE OF DEPRECIATION ON TRUCK

[Nalini Ray]

Dear All,

 

One of my clients is engaged in transport of Two Wheelers and Four Wheelers from various vehicle  manufactures from their factory to the Show Rooms located all over India. Transportation is done by its own Trucks.  I would like to have your expert opinion on " what should be the rate of depreciation applicable to these trucks as per the provisions of I T Act.  for the Assessment Year 2008-09 onwards considering the following issues :

 

1. All the commercial trucks were purchased during the Financial Year 2004-05 onwards but not within 01.01.2009 to 30.09.2009.

 

2. The Trucks are used for Transport business of the assessee which implies that the trucks are indirectly hired through the transportation contract though it is not a hiring contract.

 

3. As per the Depreciation Rate provided under I T Act under   Motor Buses, Motor Lorries and Motor Taxis of the nature Machinery & Plant 
used in a business running them on hire, the rate is 30 %. 

 

Kindly opine  whether the rate of Depreciation will be 30 % or 15 % consideruing the nature of use of the  trucks along with supporting case laws , if any.  

 

 

Thanks & Regards

CA N R RAY
PARTNER : M K BAJORIA & CO, Chartered Accountants
CUTTACK, ORISSA

CONTACTS : +91 671 2430605 | +91 98610 51246 | Fax +91 671 2430605

[ajay agrawal]

Dear Mr. Ray,   In CBDT's Circular bearing No.652 dt: 14/06/1993, it has been clarified that  higher rate of depreciation will be admissible on motor lorries used in the assessee's business of transportation of goods on hire. It is not necessary to hire the vehicles to some other person. Use of same in the assessee's own business of transportation of goods on hire would suffice. In this case, depreciation rate of 30% shall be applicable.   CA. Ajay Agrawal Sambalpur, Orissa caajaya...@gmail.com     --- On Mon, 11/22/10, Nalini Ray <rayn...@yahoo.co.in> wrote:

-- forum4ca is a Google Group of eServe online for the benefit of CA and other professionals. It is especially meant for written discussion & circulate information within group members. The mail may contain such research/advice/opinion/information/fact provided by any member and are subject to the accuracy and of the description of facts.The forum4ca, do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant facts. Further this Group’s Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Group.   To join and/or to post to this group send email: foru...@googlegroups.com To unsubscribe from this group, send email to:forum4ca+u...@googlegroups.com For more options, visit this group at:http://groups.google.co.in/group/forum4ca or www.eserveonline.net

[basudev...@gmail.com]

[LALIT AGRAWALLA]

Depreciation will be allowed @ 30%

--
forum4ca is a Google Group of eServe online for the benefit of CA and other professionals. It is especially meant for written discussion & circulate information within group members. The mail may contain such research/advice/opinion/information/fact provided by any member and are subject to the accuracy and of the description of facts.The forum4ca, do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant facts. Further this Group’s Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Group.
 
To join and/or to post to this group send email: foru...@googlegroups.com

To unsubscribe from this group, send email to:forum4ca+unsubscribe@googlegroups.com

For more options, visit this group at:http://groups.google.co.in/group/forum4ca or www.eserveonline.net

---
You received this message because you are subscribed to the Google Groups "forum4ca" group.
To unsubscribe from this group and stop receiving emails from it, send an email to forum4ca+unsubscribe@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.

--

Lalit Kumar Agrawalla, FCA DISA
Mobile 9332014316