Date: |
29-09-1994
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Notification No: |
Central Excise Circular No 64/1994
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Issuing Authority: |
Central Excise
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Type: |
Circular
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File No: |
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Subject: |
Regarding method of calculation of the depreciation which should be allowed to 'capital goods' at the time of assessment of duty from Free Trade Zone/ 100% Export Oriented Units to Domestic Tariff Area
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Regarding method of calculation of the depreciation which should be
allowed to 'capital goods' at the time of assessment of duty from Free Trade
Zone/ 100% Export Oriented Units to Domestic Tariff Area
Circular
No. 64dated 29th September 1994
Attention
is invited to Notification No. 57/94-CE dated 1st March 1994 permitting 100% EOU
to pay the duty on depreciated value if capital goods, material handling
equipments, captive power plants or as the case may be, captive generating sets
are allowed by the Board, to be cleared to DTA.
2.
In the above connection it is observed that rate of depreciation as
already been prescribed vide Circular No. 305/52/85-FTT dated 15/4/87 in case of
DTA clearance of imported goods.
3.
A doubt has been expressed as to whether the aforesaid method of
calculation should also be applicable in cases where the indigenous Capital
Goods are cleared by such units.
4.
The issue has been examined and it has been decided that the method for
calculating depreciation assessment in the above circular should apply mutatis
mutandis to those cases also where Capital Goods have
been procured from domestic market and are cleared by such units to DTA. The
rate of depreciation of such goods should be as follows:
For
every quarter during 1st year
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4%
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For
every quarter during 2nd year
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3%
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For
every quarter during 3rd year
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2.5%
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For
every quarter during 4th year and thereafter
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4%
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Subject
to an overall limit of 70%
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