Sub: Debonding of Capital Goods from the EOU /EPZ / EHTP / STP Units.
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%
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:
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.