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%.

Posted in Income-tax

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