Depreciation Norms for Computers and CG Changed for EOUs

Revised Depreciation Rates for Export Oriented Units: 90% for Computers, 75% for Other Capital Goods

Depreciation rates for capital goods cleared from Export Oriented Units have been revised, increasing the overall limit to 90% for computers and 75% for other capital goods. Computers will depreciate quarterly at 7% during the first two years, 5% in the third year, and 3% thereafter, reflecting their rapid obsolescence. Other capital goods will depreciate quarterly at rates ranging from 4% to 2% over five years and beyond. Depreciation is calculated from the date the goods enter the manufacturing process until clearance to the Domestic Tariff Area, using the straight-line method. For second-hand imported capital goods, depreciation starts from the value accepted by customs at import assessment. If partial debonding results in sale values exceeding depreciated values, the higher transaction value will be used for duty calculation. These changes aim to promote exports by providing higher depreciation allowances on duty payments.