depreciation

[Asked by 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

 

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.