rate of depreciation under Income tax act 1961 of Rigs machi

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CA. C.N.PATIL (Querist)
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22 September 2009 Sir ,
What is the rate of depreciation under income tax act 1961 of Rigs machine attached lorry (i.e entire machine comes loaded on lorry )

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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22 September 2009 Dear Mr. Patil,

Rigs machine - pile or dril are not a specified machine as per depreciation list under income tax act neither it becomes commercial vehicle simply because it comes loaded on lorry.

So in my opinion you can claim normal depreciation of plant & machinary and additinal dep in case of new machine.

Please go through the depreciation schedule if you can find anything more specific for the industry type please keep me informed.

Thanks
Sanjay

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CA. C.N.PATIL

CA. C.N.PATIL (Querist)
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22 September 2009 I have gone thru sec.32 , as per that , as you said , it neither becomes commercial vehicle , but since I hav verified company's records & i found that ,Rig loaded on lorry has been registered as "heavy goods vehicle " & "heavy motor vehicle " as per sec 2 Of motor vehicle act 1988 , hence we may claim depreciation @40% , since by document evidence based on registration , we may prove it as commercial vehicle put into use in Assesse's own business.

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CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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23 September 2009 Dear Mr. Patil,

I do agree with you that based on the documentary eveidence we can claim dep treating the rig as commercial vehicle.

Please check the rate as 40% rate is for CV vehicle acquired on or after 01.10.98 and put to use before 01.04.99. So please have a look, you may may claim @ 60% or 50% also based on the date.

Thanks and Regards,

Sanjay

CA. C.N.PATIL

CA. C.N.PATIL (Querist)
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23 September 2009 so , Ihav further verified , documents as regards , whether it is acquired as dates prescribed , since rig-mounted vehicle is purchased & registered in 1998 & support vehicle is purchased & registered in 2002, since our machine is second hand , so we decided right now to claim as plant & machinery @ 15% .