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http://www.etaxindia.org RATES OF DEPRECIATION UNDER COMPANIES ACT SCHEDULE XIV [See sections 250 and 350] RATES OF DEPRECIATION __________________________________________________________________________ Single Shift Double Shift Triple Shift Nature of Assets ------------ ------------ -----------WDV SLM WDV SLM WDV SLM ___________________________________________________________________________ I BUILDINGS (a) Buildings(Other than factory Buildings) [NSED] (b) FACTORY BUILDINGS (c) Purely Temporary Erections such as wooden structures. 5.00 10.00 100 1.63 3.34 100
II
PLANT AND MACHINERY (i) General rate applicable to (a) plant & machinery (not 13.91 being a ship) other than continuous process plant for which no special rate has been prescribed under (ii) below (b) continuous process plant, 15.33 2[***] for which no special rate has been prescribed under (ii) below [NSED] (ii)Special Rate A. 1. Cinematography films20.00 Machinery Used in the production and Exhibition of cinematography Films[NSED] a. Recording equipment, reproducing Equipment, developing machines Printing machines, editing Machines, synchronisers and Studio lights excepts bulb b. Projecting equipment of Film exhibiting concerns 2 Cycles [NSED] 20.00 3 Electrical machinery, X-ray 20.00 and electro-therapeutic apparatus and accessories thereto medical, diagnostic equipment, namely cat-scan, ultrasound machines, ECG monitors, etc.[NSED] 4 Juice boiling pans (karhais) 20.00 [NSED] 5 Motor-cars, motor-cycles, 25.89 scooters & other mopeds[NSED]
4.75 20.87
7.42
27.82
10.34
5.28
7.07
7.07 7.07
7.07 9.5
6 7 8
9
Electrically operated 20.00 vehicles including battery powered vehicles [NSED] Sugarcane crushers(indigen- 20.00 Ous kolhus & beans) [NSED] Glass manufacturing concerns 20.00 except direct fire glass melting furnacesRecuperative and regenerative glass melting furnaces Machinery used in the 15.62 manufacture of electronic goods and components
7.07 7.07 7.07 30.00 11.31 40.00 16.21
5.38
23.42
8.46
31.23
11.87
B.1 [Aeroplanes, aero engines, 16.2 simulators, Visual System and quick engine change Equipment [NSED] 2 Concrete pipes manufacture- 30.00 Moulds [NSED] 3 Drum containers manufacture- 30.00 Moulds [NSED] 4 Earth-moving machinery 30.00 employed in heavy construction works, such as dams, tunnels, canals, etc. [NSED] 5 Glass manufacturing concerns 30.00 except direct fire glass melting furnaces-Moulds 30.00 [NSED] 6 Moulds in iron foundries 30.00 [NSED] 7 Mineral oil concerns-Field 30.00 operations(above ground)Portable boilers, drilling tools, well-head tanks, rigs, etc.[NSED] 8 Mines and quarries-Portable 30.00 underground machinery and earth-moving machinery used in open caste mining[NSED] 9 Motor buses and motor 30.00 lorries other than those used in a business of running them on hire[NSED] 9A Motor tractors, harvesting 30.00 combines[NSED] 10 Patterns, dies and 30.00 templates[NSED] 11 Ropeway structures-Ropeways, 30.00 ropes and trestle sheaves and connected parts[NSED] 12 Shoe and other leather goods 30.00 fabrics-Wooden lasts used in the manufacture of shoes C. 1. [** ** **] 40.00
5.6
11.31 11.31 11.31
11.31 11.31 11.31 11.31
11.31
11.31
11.31 11.31 11.31 11.31 45.00 18.96 60.00 29.05
16.21
2.
3. 4. 5.
Motor buses, motor lorries and motor taxis used in a business of running them on hire [NESD] Rubber and plastic goods factories-Moulds[NESD] Data processing machines including computers[NESD] Gas cylinders including valves and regulators[NESD]
40.00
16.21
40.00
16.21
40.00
16.21 100 100 100 100 10.00 100 100 100
D. 1.Artificial silk 100 manufacturing machinery with Wooden parts 2. Cinematograph films-Bulbs 100 of studio lights 3. Flour mills-Rollers 100 4. Glass manufacturing 100 concerns-Direct fire glass Melting Furnaces 4A. Flot Glass Melting Furnaces 27.00 (NESD) 5. Iron and Steel industries100 Rolling mill rolls 6. Match factories-Wooden 100 match frames 7. Mineral oil concerns- (a) 100 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 8. Mines And Querries 100 9. a. Tubs, winding ropes, 100 haulage ropes and sand Stowing pipes b Safety Lamps 10. Salt works-Salt pans, 100 reservoirs and condensers Etc. made of earthy, sandy or clay material or Any other similar material 11. Sugar works-Rollers 100 III FURNITURE AND FITTINGS 1 General Rates [NESD] 18.1 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;
100 100
100
100 6.33
and for furniture and fittings let out on hire for use on occasion of marriages and similar functions [NESD] 25.88 IV SHIPS 1. Ocean-going ships i) Fishing vessels with wooden hull [NESD] ii) Dredgers, tugs, barges, survey launches and Other similar ships used mainly for dredging Purposes [NESD] iii)Other ships [NESD] 2. Vessels ordinarily operating on inland watersi) Speed boats [NSED] ii) Other vessels [NESD]
9.5
27.05 19.8
10.00 7.00
14.6 20.00 10.00
5.00 7.07 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 applies1. 2. 3. 4. 5. Accounting machines. Air-conditioning machinery including room air-conditioners. Building contractor’s machinery. Calculating machines. 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.