F.No.: S-15/05/2004
EOU Date : 07.04.2004
×¾ÖÂÖµÖ / Sub: Depreciation admissible in respect of Capital
Goods to
EOU/EHTP/STP units –– reg.
Attention of all concerned is invited to Notification Nos. 52/2003-Cus and 22/2003 CE both dated 31.3.2003, governing duty free import and procurement by EOUs and units in the EHTP/STP. In the said notifications, it has been provided that in respect of clearance of capital goods by EOU/EHTP/STP units, depreciation at the rate of 20% per annum of the original value of the computers and computer peripheral items and 10% per annum in case of other capital goods would be admissible. In the notifications (refer Explanation to para 4 of the notification No. 52/2003 Cus and Explanation to Para 8 of the Notification No. 22/2003 CE) it has been also provided that depreciation shall be allowed for the period from date of commencement of commercial production of the unit, or where such goods have been received after such commencement, from the date such goods have come into use for commercial production, till date of payment of such duty. It is clarified vide Board’s circular No. 29/2003 Cus dated 3.4.2003 [2003(153) ELT T54] that depreciation could be allowed upto 100%.
In terms of the above stated notification Trade is hereby informed that depreciation is admissible till the date of payment of duty. Depreciation will be allowed in straight line method and would be allowed till the date of payment of duty. For the part years or months, depreciation would be computed proportionately.
Sd/-
(P.
Karthikeyan)
Commissioner
Sd/-
(V.NAGENDRA RAO)
ASSISTANT COMMISSIONER