Depreciation rate on commercial truck for transportation
This query is : Open
23 September 2013
What will be the depreciation rate on a truck used for transportation of goods purchased on 01.01.2013 for A.Y. 2013-14?
Please reply
Please reply
23 September 2013
As per the Income tax act depreciation rate for the vehicles used for business purpose(transport operation) is 30%. If such asset is purchased on or after 1st October of the concern year then the depreciation rate shall be the 50% of the above rate for such year.
Thus in your case depreciation rate is 15% for A.Y 2013-14 because of you purchased it after 1st October 2012.
OM SAI SRI SAI JAI JAI SAI
Thus in your case depreciation rate is 15% for A.Y 2013-14 because of you purchased it after 1st October 2012.
OM SAI SRI SAI JAI JAI SAI
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23 September 2013
30% for full year and 15% for half year.
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24 September 2013
Thank you Tirumala Sir and Sanket Sir.
But sir, if the trucks are being used for the purpose of transportation of goods manufactured by the assessee only, then will the same apply?
But sir, if the trucks are being used for the purpose of transportation of goods manufactured by the assessee only, then will the same apply?
24 September 2013
You mean trucks are used by the assessee for his own business use means like transport of goods from factory to godwon etc... means use for his own business operations. In such case depreciation rate is 15% and 7.5% respectively.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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24 September 2013
Sir, the goods are transported to wholesalers.
The assessee has a trading business also and the trucks are used for transportation of goods in that business too.
Please sir, tell me the block of such asset too.
Please reply sir. It would be a great help.
The assessee has a trading business also and the trucks are used for transportation of goods in that business too.
Please sir, tell me the block of such asset too.
Please reply sir. It would be a great help.
24 September 2013
Is assessee separately charging transportation fees i.e frights separately for transport of goods to the wholesalers(buyers) premises then it comes under business category and liable for depreciation @30% and 15% respectively.
In case separately not charging frights then it uses for his own business then comes under 15% and 7.5% category respectively.
OM SAI SRI SAI JAI JAI SAI
In case separately not charging frights then it uses for his own business then comes under 15% and 7.5% category respectively.
OM SAI SRI SAI JAI JAI SAI
24 September 2013
Thank You Sir
24 September 2013
Are you clarified and satisfied.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
24 September 2013
Sir one small doubt remains in mind.....
Doesn't the truck fall in this block:
Plant & Machinery
Block-08 ii.
New commercial vehicle acquired/purchased on or after 01st Jan,2009 but before 01st Oct,2009 and put to use before 01st Oct,2009 for (B or P)
If no, which block is applicable?
Doesn't the truck fall in this block:
Plant & Machinery
Block-08 ii.
New commercial vehicle acquired/purchased on or after 01st Jan,2009 but before 01st Oct,2009 and put to use before 01st Oct,2009 for (B or P)
If no, which block is applicable?
25 September 2013
Yes, it is comes under plant and machinery category and 15% block if it is used for own business or professional purpose and 30% block if it is used for transport operation business.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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25 September 2013
Om Sai Ram
Sir, if the asset comes in the block 8 as mentioned above,
then my doubt is that whether this depreciation be allowable since i have copied the above lines from reckoner for A. Y. 2013-14 and it is giving a closed rate of depreciation.
Please reply
Sir, if the asset comes in the block 8 as mentioned above,
then my doubt is that whether this depreciation be allowable since i have copied the above lines from reckoner for A. Y. 2013-14 and it is giving a closed rate of depreciation.
Please reply
25 September 2013
Sorry, i couldn't properly understand your question.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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26 September 2013
Om Sai Ram
Sir, as per my understanding, the truck falls under block 8 (ii) and the categorization only explains asset bought in 2009 for which 50% depreciation is allowable....in the depreciation rates for A.Y. 2013-14 also the same year 2009 is mentioned and not any year later than this.
Please correct me wherever I am wrong.
Sir, as per my understanding, the truck falls under block 8 (ii) and the categorization only explains asset bought in 2009 for which 50% depreciation is allowable....in the depreciation rates for A.Y. 2013-14 also the same year 2009 is mentioned and not any year later than this.
Please correct me wherever I am wrong.
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