| Date: |
11-04-1997
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| Notification No: |
Customs Circular No 8/1997
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
Regarding allowance for depreciation
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Regarding allowance for depreciation
Circular No.
8 dated 11th April 1997
Reference is
invited to Board's instruction issued vide letter of even number dated 22.9.1994
whereby the rate of depreciation was prescribed @ 5% per quarter for first 2
years and 4% per quarter for next 2 year subject to maximum of 70%.
2.
As the rate of technological obsolescence is increasing very fast in
computer hardwires, Ministry of Commerce and Department of Electronics have
requested for allowing higher rate of depreciation at the time of debonding of
computer form the EHTP/ STP and EOUs. Board has considered the matter and it has
been decided to allow the rate of depreciation as under:
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7% per
quarter in 1st year from the data of use
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Total 28%
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7% per
quarter in 2nd year
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Total 28%
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5% per
quarter in 3rd year
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Total 20%
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subject to a
maximum of 70%
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3.
It may be mentioned that the capital equipment other than computers would
continue to be eligible to normal depreciation rates.
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