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Circular

CIR NO. 43/1998-CUS Dated 26-06-1998

Document type
Circular
Reference no.
D
Dated
Category
CBEC Circulars Issued In The Year-1998

EOUs/EPZ Units- CG depreciation norm raised to 90%


Circular No. 43/98 Customs dated 26/6/1998
Sub:
Debonding of Capital Goods from the EOU/EPZ/EHTP/STP Units.
I am directed to refer to Board's Circular No. 27/98-Cus issued from F.No. 314/19/94-FTT dated 21.4.98. It has been provided in para 4 of the above said Circular that the depreciation for capital goods other than computers, at the following ratesmay be allowed:
    For every quarter in the 1st year - 4%
    For every quarter in the 2nd year - 3%
    For every quarter in the 3rd year - 3%
    For every quarter in the 4th year - 2.5%
    For every quarter in the 5th year - 2%
    and thereafter
    subject to a maximum of 75%.
2. Representations have been received from the Trade and recommendations from the Ministry of Commerce that the above said depreciation norms may be raised to an overall limit of 90% as provided in the Exim Policy as also in the Income Tax Rules, 1962.

3. The issue has been re-examined by the Board and it has been decided to revise the depreciation norms for the capital goods other than computers and computer peripherals, to 90% with the following stipulations:
    For every quarter in the 1st year - 4%
    For every quarter in the 2nd year - 3%
    For every quarter in the 3rd year - 3%
    For every quarter in the 4th year - 2.5%
    and thereafter,
    subject to a maximum of 90%.
4. The Circular No. 27/98 stands modified to the above extent.

5. The above may be given a wide publicity by issue of Public Notice. Cases already decided may not be reopened.

Sd/-
(O.P.Khanduja)
Sr. Technical Officer (FTT)

F. No. 314/19/98-FTT

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