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Increased rate of depreciation on Motor Vehicles

Jiten M. Trivedi (Article Assistant) (56 Points)

19 July 2009

Sir i have come accross a situation where a motor car has been purchased for BUSINESS AND PROFESSION by a proprietor in january 2009. Can he claim deprecation at the rate of 50% or he will get the depreciation at 15%. Please also clarify the exact rules to get depreciation at 50%.

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5 Replies

(Guest)

Hi Jiten,

If he is engaged in running it on hire then he can get 30% dep. rate for the AY 09-10 otherwise 15%, however he has used it for less then 180 days so the will get 50% of the eligible dep. He can't get 50% rate of dep.

Jiten M. Trivedi (Article Assistant) (56 Points)
Replied 20 July 2009

Thnx tinku..

But there is some dfrafting error .. So plz clarify it AGAIN..

Sry bt plz do that for me...

(Guest)

Hi Jiten,

Kindly let me know whats the error you are facing.

Abhishek Mohta (ACON) (508 Points)
Replied 21 July 2009

New commercial vehicle which is acquired on or after the 1st day of April, 2001 but before the 1st day of April, 2002 and is put to use before the 1st day of April, 2002 for the purposes of business or profession			50
Commercial vehicle means heavy goods vehicle, heavy passenger motor vehicle, light motor vehicle, medium goods vehicle and medium passenger motor vehicle but does not include maxi-cab, motor-cab, tractor and road-roller. The expressions heavy goods vehicle, heavy passenger motor vehicle, light motor vehicle, medium goods vehicle, medium passenger motor vehicle, maxi-cab, motor-cab, tractor and road-roller shall have the meanings respectively assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988).

Only in the above case you can claim depreciation @ 50% on motor car.

VIPUL (ARTICLE ASSITANT) (68 Points)
Replied 26 December 2009

you can claim depriciation at the rate of 50% if you purchase and put to use on or after 1-01-09 but before 30-09-09 and only for the business purpose.important point is that it should be commercial vehicle not luxury cars