RATES OF DEPRECIATION UNDER COMPANIES ACT (WDV & SLM)
RATES OF DEPRECIATION UNDER COMPANIES ACT
SCHEDULE XIV
[See sections 250 and 350]
PLANT AND MACHINERY
FURNITURE AND FITTINGS
SHIPS
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Nature of Assets
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Single Shift
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Double Shift
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Triple Shift
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Written Down
Value (WDV)
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Straight-Line
Method (SLM)
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Written Down
Value (WDV)
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Straight-Line
Method (SLM)
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Written Down
Value (WDV)
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Straight-Line
Method (SLM)
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I.BUILDINGS
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||||||
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(a)Buildings (Other than factory Buildings) [NSED]
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5
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1.63
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(b)FACTORY BUILDINGS
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10
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3.34
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(c)Purely Temporary Erections such as wooden structures.
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100
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100
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II.PLANT AND MACHINERY
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(i) General rate applicable to
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(a)plant & machinery (not being a ship) other than continuous
process plant for which no special rate has been prescribed under
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13.91
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4.75
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20.87
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7.42
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27.82
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10.34
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(ii) below
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(b)continuous process plant, 2[***] for which no special rate has been
prescribed under (ii) below [NSED]
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15.33
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5.28
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(ii) Special Rate
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A
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1. Cinematography films- Machinery Used in the
production and Exhibition of cinematography Films[NSED]
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20
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7.07
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a.Recording equipment,reproducing Equipment, developing machines Printing,
machines, editing Machines, lights excepts bulbsynchronisers and Studio
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b.Projecting equipment of Film exhibiting concerns
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2.Cycles [NSED]
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20
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7.07
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3.Electrical machinery, X-ray and
electro-therapeutic apparatus and accessories equipment, namely cat-scan,
monitors, etc.[NSED]ultrasound machines, ECG
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20
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7.07
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4. Juice boiling pans (karhais) [NSED]
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20
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7.07
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5.Motor-cars, motor-cycles, scooters & other
mopeds[NSED]
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25.89
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9.5
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6.Electrically operated vehicles including battery
powered vehicles [NSED]
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20
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7.07
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7.Sugarcane crushers(indigen-Ous kolhus &
beans) [NSED]
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20
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7.07
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8.Glass manufacturing concerns except direct fire
glass melting furnaces- Recuperative and regenerative glass melting furnaces
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20
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7.07
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30
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11.31
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40
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16.21
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9.Machinery used in the manufacture of electronic
goods and components
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15.62
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5.38
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23.42
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8.46
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31.23
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11.87
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B
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1. [Aeroplanes, aero engines, simulators, Visual
System and quick engine change Equipment [NSED]
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16.2
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5.6
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2.Concrete pipes manufacture-Moulds [NSED]
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30
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11.31
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3.Drum containers manufacture-Moulds [NSED]
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30
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11.31
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4.Earth-moving machinery employed in heavy
construction works, such as dams, tunnels, canals, etc. [NSED]
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30
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11.31
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5.Glass manufacturing concerns except direct fire
glass melting furnaces-Moulds [NSED]
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30
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11.31
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6. Moulds in iron foundries [NSED]
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30
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11.31
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7. Mineral oil concerns-Field operations(above
ground)- Portable boilers, drilling tools, well-head tanks,rigs, etc.[NSED]
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30
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11.31
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8.Mines and quarries-Portable underground machinery
and earth-moving machinery used in open caste mining[NSED]
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30
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11.31
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9. Motor buses and motor lorries other than those
used in a business of running them on hire[NSED]
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30
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11.31
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9A. Motor tractors, harvesting combines[NSED]
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30
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11.31
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10.Patterns, dies and templates[NSED]
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30
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11.31
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11.Ropeway structures-Ropeways,ropes and trestle
sheaves and connected parts[NSED]
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30
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11.31
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12. Shoe and other leather goods fabrics-Wooden
lasts used in the manufacture of shoes
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30
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11.31
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45
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18.96
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60
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29.05
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C.
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1. [** ** **]
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40
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16.21
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2.Motor buses, motor lorries and motor taxis used
in a business of running them on hire [NESD]
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40
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16.21
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3.Rubber and plastic goods factories-Moulds[NESD]
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40
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16.21
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4.Data processing machines including
computers[NESD]
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5.Gas cylinders including valves and
regulators[NESD]
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40
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16.21
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D.
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1.Artificial silk manufacturing machinery with
Wooden parts
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100
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100
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2.Cinematograph films-Bulbs of studio lights
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100
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100
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3.Flour mills-Rollers
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100
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100
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4.Glass manufacturing concerns-Direct fire glass
Melting Furnaces
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100
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100
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4A.Flot Glass Melting Furnaces (NESD)
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27
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10
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5.Iron and Steel industries-Rolling mill rolls
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100
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100
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6.Match factories-Wooden match frames
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100
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100
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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
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100
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100
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8.Mines And Querries
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100
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100
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9. a. Tubs, winding ropes, haulage ropes and sand
Stowing pipes
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100
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100
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b. Safety Lamps
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10.Salt works-Salt pans, reservoirs and condensers
Etc. made of earthy, sandy or clay material or Any other similar material
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100
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100
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11.Sugar works-Rollers
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100
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100
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III.FURNITURE AND FITTINGS
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1.General Rates [NESD]
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18.1
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6.33
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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]
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25.88
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9.5
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IV.SHIPS
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1.Ocean-going ships
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7.05
|
10
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i)Fishing vessels with wooden hull [NESD]
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ii) Dredgers, tugs, barges, survey launches and Other similar ships
used mainly for dredging Purposes [NESD]
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19.8
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7
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iii)Other ships [NESD]
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14.6
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5
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2.Vessels ordinarily operating on inland waters-
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I) Speed boats [NSED]
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20
|
7.07
|
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ii) Other vessels [NESD]
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10
|
3.34
|
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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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