7.13

a) Broad conditions governing debonding of SEZ units are indicated at Appendix-14-J of the Handbook (Vol. I).

b) The depreciation norms for capital goods, including computers, computer peripherals and electronics, shall be subject to an overall limit of 90% as notified by the Department of Revenue.

c) Depreciation for computers and computer peripherals for all SEZ units and for capitals goods of IT hardware/electronic units shall be as follows:

10 % for every quarter in the first year,
8 % for every quarter in the 2nd year,
7 % for every quarter in the 3rd year,

d) Depreciation norms for capital goods of units, including electronics, would be subject to an overall limit of 90% as notified by the Department of Revenue.

(i) Depreciation for computers and computer peripherals for all types of electronic units would be as follows:

10% for every quarter in the first year
8% for every quarter in the second year
7% for every quarter in the third year

(ii) For capital goods , other than the above, the depreciation rate would be as follows:

4% for every quarter in the first year
3% for every quarter in the second and third year; and
2.5% for every quarter in the fourth year and thereafter.

e) Debonding of capital goods imported as second hand shall not be allowed under EPCG Scheme. In respect of second hand capital goods which are less than 10 years old on date of import, debonding may be allowed, on payment of applicable duties, after 2 years from the date of import . In addition, where the second hand capital goods are more than 10 years old, debonding may be allowed only against an import licence and payment of applicable duties.

(In above Para (d) & (e) has been corrected vide PN No. 17/2002, Dt. 05/06/2002)

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d) For capital goods, other than above, the depreciation rate shall be as follows:

4 % for every quarter in the first year.
3 % for every quarter in the second and third year
2.5 % for every quarter in the fourth year and thereafter

e) Debonding of capital goods imported as second hand shall not be allowed under EPCG scheme. Moreover, no debonding on payment of applicable duties shall be allowed in respect of second hand capital goods imported on or after 1.4.99, for a period of at least 3 years from the date of imports.]