Dep rate on TATA ACE Lorry for dilevery of goods

dep rate on TATA ACE Lorry for dilevery of goods
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Quick Summary
This discussion clarifies the depreciation rate for a Tata Ace lorry used in goods delivery according to the Income Tax Act. Generally, vehicles used for transporting goods for customers and charging freight qualify for a 30% depreciation rate. If the lorry is used for internal transfers between your own facilities or for collecting/delivering laundry for hotels, the rate remains 30%. However, if the vehicle is used for less than 180 days in its first year, the depreciation rate is halved to 15% for that initial year, with the full 30% claimable from the second year onwards.

As per Income Tax act, Depreciation for Vehicles used in the transportation is 30%.p.a.

If Such vehicle is used for transportation of goods for own purpose i. e for Transportation from One godown to other /  from Factory to Godown , then the depreciation rate is 15 % p.a..

If vehicle is used for transporting goods to customers' premises & Freight is charged - then depreciation rate is 30%.

 

Lorry use for collet and dilever Laundry from Hotels and resorts.. then

Depreciation rate will be 30%

As you are a Laundry Owner , Lorry is used to transport clothes from Hotel to Laundry & again send it back to hotel from laundry.

So , Depreciation rate for whole year is 30%. p.a. 

If Lorry is used for less than 180 days, then in the first year rate will be 15% .(example- If for the year ended 31/03/2020, Lorry is Purchased on 02/03/2020, it means asset is used for less than 180 days , rate of depreciation will be 15%)

From the 2nd year, you can claim entire 30% depreciation.

 

 

 

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