EOUs/ EPZ Units - CG depreciation norm raised to 90% - Customs - 043/98

Circular No. 43/98-Customs dated 26/6/1998 F.No. 314/19/98- FTT Government of India Ministry of Finance, Department of Revenue (Central Board of Excise and Customs), New Delhi Sub: Debonding of Capital Goods from the EOU /EPZ / EHTP / STP Units. I am directed to refer to Board's Circular No. 27/98-Cus issued from F. No. 314/19/94-FTT dated 21.4.98. It has been provided in para 4 of the above said Circular that the depreciation for capital goods other than computers, at the following rates may be allowed: For every quarter in the 1st year - 4% For every quarter in the 2nd year - 3% For every quarter in the 3rd year - 3% For every quarter in the 4th year - 2.5% For every quarter in the 5th year - 2% and thereafter subject to a maximum of 75% 2. Representations have been received from the Trade and recommendations from the Ministry of Commerce that the above said depreciation norms may be raised to an overall limit of 90% as provided in the Exim Policy as also in the Income Tax Rules, 1962. 3. The issue has been re-examined by the Board and it has been decided to revise the depreciation norms for the capital goods other than computers and computer peripherals, to 90% with the following stipulations: For every quarter in the 1st year - 4% For every quarter in the 2nd year - 3% For every quarter in the 3rd year - 3% For every quarter in the 4th year - 2.5% and thereafter, subject to a maximum of 90% 4. The Circular No. 27/98 stands modified to the above extent. 5. The above may be given a wide publicity by issue of Public Notice. Cases already decided may not be reopened. Sd/- (O.P. Khanduja) Sr. Technical Officer (FTT)