Home ||
Export
Import Policy & DGFT matters
|| Customs matters ||
Central Excise matters ||
RBI matters ||
Shipping and Logistics Information
ieport.com - India's Premier portal on EXIM matters
-------------------------------------------------------------------------------------
Customs Circular No 14 /2004 dated 13.2.2004
SUB:- Depreciation admissible in respect of Capital Goods to EOU/EHTP/STP
I am directed to invite your attention to the Notifications Nos 52/2003-Cus
and 22/2003-CE both dated the 31st March, 2003 governing duty free import and
procurement by EOUs and units in EHTP/ STP. In the said notifications , it has
been provided that in respect of clearance of capital goods by EOU/EHTP/STP
units depreciation at the rate of 20% per annum of the original value of
computer and computer peripherals items and 10% per annum in case of other
capital goods would be admissible. In the notifications( refer Explanation to
para 4 of the notification No 52/2003-Cus and Explanation to para 8 of the
notification No 22/2003-CE) it has been also provided that depreciation shall be
allowed for the period from date of commencement of commercial production of the
unit or where such goods have been received after such commencement, from the
date such goods have come into use for commercial production, till date of
payment of such duty. The Board vide circular 29/2003-Cus dated 3-4-2003 , also
has clarified that depreciation could be allowed upto 100%.
2. It has come to the notice of the Board that divergent practices are being
followed while allowing depreciation to EOU/EHTP/ STP units. In the field
formations , in some Commissionerates , depreciation is being calculated for
full years only.
3. The matter has been examined by the Board. In terms of the above stated
notification depreciation is admissible till the date of payment of duty.
Therefore, there is no basis for contending that depreciation would be allowed
for full year or quarter year only. The depreciation is allowed in straight line
method and would be allowed till the date of payment of duty. For the part years
or months, depreciation would be computed proportionally.
4. Difficulty, if any, faced in implementation of the above said instruction,
may please be brought to the notice of the Board at the earliest.
5. Wide publicity may please be given to the above said instruction by way of
issuance of public notice.
6. Kindly acknowledge the receipt of this circular.
7. Hindi version follows.
( A.K.SINHA)
Technical Officer( FTT)
F.No 305/195/2003-FTT