depreciation

[Guest]

sir

we have hired tippper & receive hire charges & same is taxed as business income.

what rate of dep. allowable-:

1. nornal rate ie 15% under plant & machinery

or

2.motor buses motor lorries used in business of running them on hire - 30%  ---- can tippers be classified as motor lorries????

also suggest relevant latest case laws

 

[CAGOPALJI AGRAWAL]

The Tippers, Vibrators and Vibrators soil compactors are commercial vehicle eligible for higher rate of depreciation @ 30%

You may visit the below case law

2012 (5) TMI 7 - PUNJAB & HARYANA HIGH COURT

[Guest]

sir actually we have given tippers on hire & hire charges r received. then also can we claim deprciation under commercial vehicle ?? or under motor vehicles lorries given on hire & hiring is business os assessee??

 

[CAGOPALJI AGRAWAL]

Of course, if the tippers are given and hiring charges is being recd, you would be entiled for higher depreciation.

AI Summary

Commercial vehicle classification entitles hired tippers to claim higher depreciation rate under income tax law. Tippers, vibrators and soil compactors used commercially and given on hire qualify as commercial vehicles and are eligible for the higher rate of depreciation. Where hire charges are received as business income, the assessee may claim the higher depreciation rate applicable to motor vehicles used for hire rather than the normal plant and machinery rate.