Circular No. 8/97-Cus.
dated 11/4/97
F.No. 314/19/94-FTT (pt. VI)
Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise & Customs, New Delhi
Subject: Assessment of capital goods at the time of debonding of units working under 100% Export Oriented Units (including Electronics Hardware Technology Parks / Software Technology Parks Schemes) / Export ProcessingZones Schemes – Allowance for depreciation- Regarding.
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 :
| 7% per quarter in 1st year from the data of use |
Total 28%
|
| 7% per quarter in 2nd year |
Total 28%
|
| 5% per quarter in 3rd year |
Total 20%
|
| subject to a maximum of 70% |
3. It may be mentioned that the capital equipment other than computers would continue to be eligible to normal depreciation rates.
