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Depreciation

01 February 2013

i am a cellphone manufacturer. i want to purchase a truck to be used to transport my cellphone from factory to dealer. what depreciation i should charge. 15, 30, 40.

pls reply asap

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17 Replies

Sanjeev Kumar (Student) (141 Points)
Replied 01 February 2013

As per Income Tax act Truck is Depreciated At rate of 30%

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 01 February 2013

DEPRECIATION ON TRUCK IS30%

3 Like

CA. Ankit Bhansali (---) (120 Points)
Replied 01 February 2013

thnk u guy for your reply. but i m confused about a notification that enabled 40 % depreciation for commercial vehicles.. so do anybody have idea.

i want to use this truck just to transport goods of my business form factory to dealers

Jaiveer Singh Rawat (Learner) (130 Points)
Replied 01 February 2013

Hi Ankit

You can charge it by 30%

Ramanuj (Accountant.) (834 Points)
Replied 01 February 2013

Dear ankit

As per income tax 30% & as per Company act. 25.89% on truck.

thanks

Ramanuj

CA PuRvI M!$rA (-) (2260 Points)
Replied 01 February 2013

Ankit, 40% was charged from AY 2003-04 to 2005-06, from AY 2006-07 onwards d rate is 30%.

(Guest)

you can charge @ 30%

source: https://www.indiantaxupdates.com/depreciation-rates-as-per-income-tax-act-1961/

Deepak (to be a chartered accountant) (141 Points)
Replied 02 February 2013

I agree with puri misra

CA BARKHA MITTAL (B.COM, CA) (149 Points)
Replied 02 February 2013

Rate of dep. will be 15%. As 30% is for vehicles if assessee has a business of running them on hire. In the present case Assessee is a Cellphone Manufacturer not have a business of giving vehicles on hire. Therefore, Dep.rate is 15%.

1 Like

CA Satyen Sharma (Head - Accounts and Finance) (71 Points)
Replied 03 February 2013

Originally posted by : Ankit Bhansali
	i am a cellphone manufacturer. i want to purchase a truck to be used to transport my cellphone from factory to dealer. what depreciation i should charge. 15, 30, 40. pls reply asap

Hi !! Ankit

The Depreciation rate for Vehicles as per Income Tax is 30%

If you have incorporated your business as a company then the rate for vehicles is 25.89%

Thanks

Satyen Sharma

CA Satyen Sharma (Head - Accounts and Finance) (71 Points)
Replied 03 February 2013

Hi !! Ankit

The rate for Depreciation on Vehicles as per Income Tax is 30%

The rate for depreciation on vehicles as per companies act is 25.89%

Thanks

Satyen Sharma

CA BARKHA MITTAL (B.COM, CA) (149 Points)
Replied 04 February 2013

I dont why y people are not understanding that dep. rate is 15% on vehicles. 30% is in case of if assessee has a business of giving vehicles on hire which is not as per the present case.

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 04 February 2013

Miss BArkha The Tax Rate on Commercial Vehicles is 30% And On some Commercial Vehicles it depends on the date of purchase. Here nothing is mention hence,we take it as 30%

3 Like

CA. Ankit Bhansali (---) (120 Points)
Replied 04 February 2013

@ rashmi Gandhi. Commercial Vehicles should be use for hire for dep @ 30% and my query was it is not used for hire. i m using just for transfering of goods to dealers. so its commercial vehicle but not used for hire so 15%. u can look at schedule attached in this discussion..