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Debonding of capital goods from the <a href='http://www.eximguru.com/exim/eou/default.aspx'>EOU</a>/ EPZ/ EHTP/ STP Units
Circular
No. 43dated
26th June 1998
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 rates may 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.
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