* note on additional depriciation...........

conditions..
1)the assessee must be engaged in manufacturing or production of any article or thing
2)"NEW"plant and machinery should be acquired and installed after 31/03/2005
3)it should be elligible plant and machinery


points to noted............

*additional depriciation is not allowed in respect of BUILDING AND FURNITURE
*additional depriciation is not available in respect of OLD PLANT AND MACHINERY OR SECOND HAND ASSETS
*the word "NEW" STATED IN THE ABOVE CONDITION SHALL BE OF THE MEANING THAT ANY PLANT AND MACHINERY WHICH HAD NO EXISTENCE BEFOR EOR BROUGHT INTO EXISTENCE FOR THE FIRST TIME..


LIST OF ELLIIGIBLE  PLANT AND MACHINERY.........

*THE FOLLOWING ASSETS ARE NOT ELLIGIBLE FOR ADDITIONAL DEPRICIATION..
1)AIR CRAFTS AND SHIPS
2)ANY MACHINERY OR PLANT WHICH ,BEFORE ITS INSTALLATION BY THE ASSESSEE WAS USED EITHER WITHIN OR OUTSIDE INDIA BY ANY OTHER PERSON
3)ANY MACHINERY OR PLANT WHICH IS INSTALLED IN ANY OFFICE PREMISES OR ANY RESIDENTIAL ACCOMODATION IN THE NATURE OF GUEST HOUSE
4)ROAD TRANSPORT VEHICLE,HOWEVER "MOBILE CRAINS" USED QUARING OPERATIONS IS NOT FOR ROAD TRANSPORT PURPOSE HENCE NOT ATTRACTABLE TO ADDITIONAL DPRICIATION
5)ANY MACHINERY OR PLANT THE WHOLE OF THE ACTUAL COST OF WHICH IS ALLOWED AS DEDUCTION IN COMPUTING THE PGBP OF ANY PREVIOUD YEAR.

RATE OF ADDITIONAL DEPRICIATION..........

additional depriciation shall be available @20% of the actual cost of the machinery newly purchased if however the asset is put to use less than 180 days in the year in which it is acquired,the rate oif depriciation shall be (50% of the rate 20%) i.e 10%

thank you 
in regards 
saprativ