Wednesday, April 8, 2015

RATES OF DEPRECIATION UNDER COMPANIES ACT (WDV & SLM)


RATES OF DEPRECIATION UNDER COMPANIES ACT
SCHEDULE XIV
[See sections 250 and 350]

BUILDINGS
PLANT AND MACHINERY
FURNITURE AND FITTINGS
SHIPS

Nature of Assets
Single Shift
Double Shift
Triple Shift
Written Down Value  (WDV)
Straight-Line Method (SLM)
Written Down Value  (WDV)
Straight-Line Method (SLM)
Written Down Value  (WDV)
Straight-Line Method (SLM)
I.BUILDINGS
(a)Buildings (Other than factory Buildings) [NSED]
5
1.63

     
 

(b)FACTORY BUILDINGS
10
3.34


 
 
(c)Purely Temporary Erections such as wooden structures.
100
100

 
 
 
II.PLANT AND MACHINERY
(i) General rate applicable to






(a)plant & machinery (not being a ship) other than continuous process plant for which no special rate has been prescribed under
13.91
4.75
20.87
7.42
27.82
10.34
(ii) below






(b)continuous process plant, 2[***] for which no special rate has been prescribed under (ii) below [NSED]
15.33
5.28




(ii) Special Rate






A






1. Cinematography films- Machinery Used in the production and Exhibition of cinematography Films[NSED]
20
7.07




a.Recording equipment,reproducing Equipment, developing machines Printing, machines, editing Machines, lights excepts bulbsynchronisers and Studio






b.Projecting equipment of Film exhibiting concerns






2.Cycles [NSED]
20
7.07




3.Electrical machinery, X-ray and electro-therapeutic apparatus and accessories equipment, namely cat-scan, monitors, etc.[NSED]ultrasound machines, ECG
20
7.07




4. Juice boiling pans (karhais) [NSED]
20
7.07




5.Motor-cars, motor-cycles, scooters & other mopeds[NSED]
25.89
9.5




6.Electrically operated vehicles including battery powered vehicles [NSED]
20
7.07




7.Sugarcane crushers(indigen-Ous kolhus & beans) [NSED]
20
7.07




8.Glass manufacturing concerns except direct fire glass melting furnaces- Recuperative and regenerative glass melting furnaces
20
7.07
30
11.31
40
16.21
9.Machinery used in the manufacture of electronic goods and components
15.62
5.38
23.42
8.46
31.23
11.87
B






1. [Aeroplanes, aero engines, simulators, Visual System and quick engine change Equipment [NSED]
16.2
5.6




2.Concrete pipes manufacture-Moulds [NSED]
30
11.31




3.Drum containers manufacture-Moulds [NSED]
30
11.31




4.Earth-moving machinery employed in heavy construction works, such as dams, tunnels, canals, etc. [NSED]
30
11.31




5.Glass manufacturing concerns except direct fire glass  melting furnaces-Moulds [NSED]
30
11.31




6. Moulds in iron foundries [NSED]
30
11.31




7. Mineral oil concerns-Field operations(above ground)- Portable boilers, drilling tools, well-head tanks,rigs, etc.[NSED]
30
11.31




8.Mines and quarries-Portable underground machinery and earth-moving machinery used in open caste mining[NSED]
30
11.31




9. Motor buses and motor lorries other than those used in a business of running them on hire[NSED]
30
11.31




9A. Motor tractors, harvesting combines[NSED]
30
11.31




10.Patterns, dies and templates[NSED]
30
11.31




11.Ropeway structures-Ropeways,ropes and trestle sheaves and connected parts[NSED]
30
11.31




12. Shoe and other leather goods fabrics-Wooden lasts used in the manufacture of shoes
30
11.31
45
18.96
60
29.05
C.






1. [** ** **]
40
16.21




2.Motor buses, motor lorries and motor taxis used in a business of running them on hire [NESD]
40
16.21




3.Rubber and plastic goods factories-Moulds[NESD]
40
16.21




4.Data processing machines including computers[NESD]






5.Gas cylinders including valves and regulators[NESD]
40
16.21




D.






1.Artificial silk manufacturing machinery with Wooden parts
100
100




2.Cinematograph films-Bulbs of studio lights
100
100




3.Flour mills-Rollers
100
100




4.Glass manufacturing concerns-Direct fire glass Melting Furnaces
100
100




4A.Flot Glass Melting Furnaces (NESD)
27
10




5.Iron and Steel industries-Rolling mill rolls
100
100




6.Match factories-Wooden match frames
100
100




7.Mineral oil concerns- (a) Plant used in field operations (below ground)-Distribution returnable packages; (b)Plant used in field operations (below ground)but not including assets used in field operation distribution) Kerbsides pumps including underground tanks & fittings
100
100




8.Mines And Querries
100
100




9. a. Tubs, winding ropes, haulage ropes and sand Stowing pipes
100
100




b. Safety Lamps






10.Salt works-Salt pans, reservoirs and condensers Etc. made of earthy, sandy or clay material or Any other similar material
100
100




11.Sugar works-Rollers
100
100




III.FURNITURE AND FITTINGS
1.General Rates [NESD]
18.1
6.33




2.Rate for furniture & fittings used in hotels, restaurants and boarding houses; schools, colleges and other educational institutions, libraries; welfare centers meeting halls, cinema houses, theatres and circuses; and for furniture and fittings let out on hire for use on occasion of marriages and similar functions [NESD]
25.88
9.5




IV.SHIPS
1.Ocean-going ships
7.05
10




i)Fishing vessels with wooden hull [NESD]






ii) Dredgers, tugs, barges, survey launches and Other similar ships used mainly for dredging Purposes [NESD]
19.8
7




iii)Other ships [NESD]
14.6
5




2.Vessels ordinarily operating on inland waters-






I) Speed boats [NSED]
20
7.07




ii) Other vessels [NESD]
10
3.34





NOTES
1.“Buildings” include roads, bridges, culverts,wells and tube-wells

2.“Factory buildings” does not include offices, godowns, officers’ and employees’ quarters, roads, bridges, culverts.

3.“Speed boat” means a motor boat driven by a high speed internal combustion engine capable of propelling the boat at a speed exceeding 24 Kilo meters per hour in still water and so designed that when running at a speed it will plane, i.e., its bow will rise from the water.

4.Where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciation on such assets shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such assets has been sold, discarded, demolished or destroyed.

5.The following information should also be disclosed in the accounts:-
i.depreciation method used; and
ii.depreciation rates or the useful lives of the assets, if they are different from the principal rates specified in the Schedule.

6.The calculations of the extra depreciation for double shift working and for triple shift working shall be made separately in the proportion while the number of days for which the concerned worked double shift or triple shift, number of working days during the year shall be deemed to be-

(a) in the case of a seasonal factory or concern, the number of days on which the factory or concern actually worked during the year or 180 days, whichever is greater;
(b) in any other case, the number of days on which the factory or concern actually worked during the year or 240 days, whichever is greater.

The extra shift depreciation shall not be charged in respect of any item of machinery or plant which has been specifically, excepted by the inscription of the letters “NESD” (meaning “no extra shift depreciation”) against it an sub-items above and also in respect of the following items of machinery and plant to which general rate of depreciation of 7[13.91] per cent applies-

1.Accounting machines.
2.Air-conditioning machinery including room air-conditioners.
3.Building contractor’s machinery.
4.Calculating machines.
5.Electrical machinery-switchgear and instruments, transformers and other stationary plant and wiring and fitting of electric light and fans installation.
6.Hydraulic works pipelines and sluices.
7.Locomotives, rolling stocks, tramways and railways used by concerns.
8.Mineral oil concerns- field operations:
(a)8[***]
(b)Prime movers
(c)8[***]
(d)Storage tanks (above ground)
(e)Pipelines (above ground)
(f)Jetties & dry docks
9.Mineral oil concerns-field operations (distribution)-kerbside pumps, including underground tanks and fittings.
10.Mineral oil concerns-refineries:
a)9[***]
b)Prime Movers
c)9[***]
d)LPG Plant
11.Mines and querries:
a)Surface and underground machinery (other than electrical machinery and portable underground machinery)
b)Head-gears
c)9[***]
d)Shafts and inclines
e)Tramway on surface
11.Neo post franking machine
12.Office machinery
13.Overhead cables and wires.
14.Railway sidings.
15.Refrigeration plant container, etc (other than racks).
16.Ropeway structure:
a)Trestle and station steel work.
b)Driving and tention gearing.
17.Salt works-Reservoirs, condensers, salt pans, delivery channels and piers if     constructed of masonry, concrete, cement, asphalt or similar materials; barges and floating plant; piers, quays and jetties; and pipelines for conveying brine if constructed of masonry, concrete cement, asphalt or similar materials.
18.Surgical instruments.
19.Tramways electric and Tramways run by internal combustion engines-permanent ways: cars-car trucks, car bodies, electrical equipment and motors; tram cars including engines and gears.
20.Typewriters.
21.Weighing machines
22.Wireless apparatus and gear, wireless appliances and accessories.
23.[***]

7.Continuous process plant means a plant which is required and designed to operate  24 hours a day.

8.Notwithstanding anything mentioned in this Schedule, depreciation on assets, whose actual cost does not exceed five thousand rupees, shall be provided at the rate of hundred percent:

Provided that where the aggregate actual cost of individual items of plant and machinery costing Rs. 5,000 less constitutes more than 10 per cent of the total actual cost of plant and machinery, rates of depreciation applicable to such items shall be the rates as specified in Item II of the schedule.


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