Dep rate on TATA ACE Lorry for dilevery of goods
Mohammed Fahad (Become CA) (76 Points)
06 October 2020
dep rate on TATA ACE Lorry for dilevery of goods
Mohammed Fahad (Become CA) (76 Points)
06 October 2020
Pallavi P
(Job)
(151 Points)
Replied 06 October 2020
As per Income Tax act, Depreciation for Vehicles used in the transportation is 30%.p.a.
If Such vehicle is used for transportation of goods for own purpose i. e for Transportation from One godown to other / from Factory to Godown , then the depreciation rate is 15 % p.a..
If vehicle is used for transporting goods to customers' premises & Freight is charged - then depreciation rate is 30%.
Mohammed Fahad
(Become CA)
(76 Points)
Replied 06 October 2020
Pallavi P
(Job)
(151 Points)
Replied 06 October 2020
Depreciation rate will be 30%
As you are a Laundry Owner , Lorry is used to transport clothes from Hotel to Laundry & again send it back to hotel from laundry.
So , Depreciation rate for whole year is 30%. p.a.
If Lorry is used for less than 180 days, then in the first year rate will be 15% .(example- If for the year ended 31/03/2020, Lorry is Purchased on 02/03/2020, it means asset is used for less than 180 days , rate of depreciation will be 15%)
From the 2nd year, you can claim entire 30% depreciation.
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