Depreciation on commercial vehicle

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PRIYA (Querist)
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28 February 2009 Dear sir,
A private limited co doing hotel business purchase car for its director for business purpose (not as taxi). Will the car come under the purview of commercial vehicle eligible for 50% depreciation?

I read the article written by Mr.Rajaratnam where in it is stated thus-it may therefore , be seen that motor cars qualify for depreciation at 20% unless run on hire to merit depreciation at 30%. I did not understand under which catagory does motor car qualify 20%?

The last para of the article states that the amendment is obviously intended to cover only trucks and other heavy vehicles , besides other commercial vehicles hiterto entitled to depreciation at 30%. So amendment is only for Entry 3(ii)?

If the car is purchased will we get 50% depreciation this year or is it the rate for vehicles purchased after 1st jan 2009 and before 1st April 2009? Can we claim 50% this year or 25% this year and 50% next year?

Pls advice,

Priya

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 February 2009 I support the view of Mr Rajaratnam.
Para-2 of your query-- 20% was for assessment years 2003-04 to 2005-06 under entry 111 (2). 30% mentioned therein may be a typographical mistake.
In view of SO 197(E) of CBDT dated 19/1/2009 depreciation at higher rate cannot be claimed in the given case.

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