Depreciation Norms for Computers and CG Changed for EOUs

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..... e EOU/ EPZ/ EHTP/ STP Units. I am directed to refer to Board's F.No.305/52/85-FTT dated the 15th April 1987 wherein the method for calculating the depreciation on 'Capital goods' permitted to be taken outside the units, was prescribed, and the over all limit of depreciation was fixed at 70%. Subsequently Board in their F.No. 314/19/94- FTT Part - VI, dated 11th April, 1997 had provid .....

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..... decided that for computer following rate of depreciation may be allowed :- For every quarter during 1st year -7% For every quarter during 2nd year - 7% For every quarter during 3rd year - 5% For every quarter during 4th year and onwards - 3% Subject to an overall limit of 90% and for capital goods other than compute .....

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..... to Bond Bill of Entry. 5. The depreciation shall be calculated as per straight line method. However in case of partial debonding of the computer of other capital goods as the case may be, are sold at a value higher than that arrived after allowing depreciation at the above said rates, the transaction value may be taken as the assessable vale for the purpose of calculation of duty. Sd/- .....

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