Depreciation of Debonded Capital goods of Computer & Computer Peripheral - Central Excise Practice Manual (OLD) - Central Excise

Depreciation of Debonded Capital goods of Computer Computer Peripheral The depreciation is allowed at the higher rate notified under notification Nos. 52/03-Cus., dated 31-3-2003 and 22/03-CE, dated 31-3-2003 in the case of computer and computer peripherals items. The rate of depreciation in case of other capital goods has also been notified under the aforesaid Customs and Central Excise notification. The depreciation is allowed upto 100%. The depreciation is allowed for the period from the date of commencement of commercial production of the unit or where such goods have been received after such commencement; from the date such goods have come into use for commercial production to the date of payment of duty. Under the notification Nos. 52/03-Cus.,dt.31-3-2003 and 22/03-CE, dt.31-3-2003 , it has been provided that depreciation to be allowed is subject to achievement of positive NFE. The depreciation is allowed in straight line method and would be allowed till the date of payment of duty, on the basis of completed quarters. In case of goods other than capital goods, no depreciation is allowed. Duty as per Proviso to section 3(1) of Central Excise Act, 1944 is required to be paid on the manufactured goods at the rate as applicable on the date of payment of duty.