depreciation

[SARVESH BALDI]

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

 

AI Summary

Tippers Hired Out as Commercial Vehicles Qualify for 30% Depreciation Rate, Not 15% for Plant Machinery A query was raised regarding the applicable depreciation rate for tippers hired out and taxed as business income. The question was whether they should be classified under the normal plant and machinery rate of 15% or as motor lorries used for hire at 30%. A chartered accountant clarified that tippers, being commercial vehicles, qualify for the higher depreciation rate of 30%. It was confirmed that if tippers are hired out and hire charges are received, they are eligible for the higher depreciation rate. A relevant case law from the Punjab & Haryana High Court was referenced.