Opinion Of Eminent Legal Luminaries On Controversial Issues

What Are The Rates Of Depreciation On J.V.C. Machine, Road Roller And Crane, Whether @ 30% or @ 15%?

QUERY: Please enlighten the rate of depreciation applicable to the following items of plant & machinery:–

(i) J.V.C. Machine

(ii) Road Roller

(iii) Crane

They are all movable like trucks run for the business, whether depreciation on block would be @30% or @ 15%?
ANSWER: Item No. 3(ii) of Part III (Machinery and Plant) of New Appendix I prescribes higher rate @30% of motor buses, motor lorries and motor taxies used in a business of running them on hire.

Explanation (a) to third proviso to section 32 provides that “the expression ‘commercial vehicle’ means ‘heavy goods vehicle’ , ‘heavy passenger motor vehicle’, ‘light motor vehicle’, ‘medium goods vehicle’, ‘medium passenger motor vehicle’, but does not include ‘maxi-cab’, ‘motor–cab’, ‘tracker’ and ‘road roller’.

Thus, J.V.C. machine, road roller and crane would be entitled for depreciation @15% and not @ 30%.
EXPERT:
SECTION(S):
GENRE:
CATCH WORDS:

Leave a Reply

Your email address will not be published.

*

Credit: Several of the queries and answers are reproduced with permission from the AIFTP Journal. We thank AIFTP for generously allowing us to host their research material.
Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org