Rate of depreciation and development rebate - fork lift trucks - Income Tax - 617/CBDT

INSTRUCTION NO. 617/CBDT Dated : September 13, 1973 Section(s) Referred: 32 ,33 Statute: Income - Tax Act, 1961 The Board had an occasion to consider the rate at which depreciation is allowable on fork lift trucks under Appendix I to the Income-tax Rules, 1962. Fork lift truck is a multi-purpose machinery which is used for lifting as well as transporting materials from place to place either within a factory or from one location to another. When the fork lift trucks are used on the road outside the factory premises they are required to have a licence from the regional transport authorities is applicable in the case of motor trucks. These trucks are fitted with diesel engine as prime mover, hydraulic brakes and pneumatic tyres. These trucks are thus similar to motor trucks. In view thereof, the Board has decided that fork lift trucks would be classified under III(ii)D(9) of Appendix I of the I.T.Rules 1962 and would be entitled to depreciation at the rate of 30%. 2. The Board has also examined the question whether development rebate can be allowed in respect of fork lift trucks. Transport vehicles are not entitled to development rebate. No development rebate will be allowable in respect of fork lift trucks as these have been classified as transport vehicles. 3. Necessary instructions may kindly be issued to all the officers working in your charge on the lines indicated above.