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Govt. extends time period for depreciation benefit on commercial vehicles |
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The government on Friday has extended the time period for getting higher depreciation benefit on commercial vehicles by six months up to September-end, the Central Board of Direct Taxes (CBDT) said in a statement.
This move is aimed at to encourage the demand of such vehicles. Now, commercial vehicles purchased on or after January 1, 2009 and put to use before October 1 will be eligible for depreciation at the rate of 50 per cent.
Companies obtain tax benefit on depreciation, which is nominal value of consumption of capital goods for accounting purposes.
Previously, this benefit was offered for commercial vehicles bought on or after January 1 and put to use before April 1, 2009.
The government had allowed higher depreciation benefit for commercial vehicles to encourage companies to purchase new vehicles with a view to pushing their demand.
The commercial vehicle sales have fallen following the impact of global financial meltdown on India Inc.
(Posted on : 25/04/2009)
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| Govt. extends time period for depreciation benefit on commercial vehicles |
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