depreciation, Income Tax

[SARVESH BALDI]

sir

we have hired tippper & receive hire charges & same is taxed as business income.

what rate of dep. allowable-:

1. nornal rate ie 15% under plant & machinery

or

2.motor buses motor lorries used in business of running them on hire - 30%  ---- can tippers be classified as motor lorries????

also suggest relevant latest case laws

 

Posts / Replies

[CA GOPALJI AGRAWAL]

The Tippers, Vibrators and Vibrators soil compactors are commercial vehicle eligible for higher rate of depreciation @ 30%

You may visit the below case law

2012 (5) TMI 7 - PUNJAB & HARYANA HIGH COURT

[SARVESH BALDI]

sir actually we have given tippers on hire & hire charges r received. then also can we claim deprciation under commercial vehicle ?? or under motor vehicles lorries given on hire & hiring is business os assessee??

 

[CA GOPALJI AGRAWAL]

Of course, if the tippers are given and hiring charges is being recd, you would be entiled for higher depreciation.