Method of depreciation working ....Indigenous capital goods procured without payment of duty

[deepak kalambate]

Dear Sir,

Indigenous capital goods procured by 100% EOU without payment of duty and paid duty on depreciated value at the time of debonding, what is the proper method for calculation of depreciation.

1. As per Notification No. 39/2007 CE?  or

2. As per FTP Para 6.36.3

 

AI Summary

Clarification Sought on Depreciation Calculation for EOUs: Notification No. 39/2007 CE vs. FTP Para 6.36.3 A discussion on a forum revolves around the proper method for calculating depreciation on indigenous capital goods procured by a 100% Export Oriented Unit (EOU) without payment of duty. The initial query seeks clarity on whether to use Notification No. 39/2007 CE or FTP Para 6.36.3 for depreciation calculation. A respondent clarifies that if no CENVAT credit is availed, the provisions of the Cenvat Credit Rules, 2004 do not apply, and the EOU should adhere to the Foreign Trade Policy (FTP) provisions. Further assistance is requested for related case laws or orders.