11 October 2008
Sir, If extra shift depreciation applicable for a particular fixed asset and it is running in double shift then in case of that machine running in triple shift for a particular period of time what rate should I take to compute depreciation calculation. please specify the same as I am facing the problem when calculating depreciation under Companies act
20 November 2008
6. The calculations of the extra depreciation for double shift working and for triple shift working shall be made separately in the proportion which the number of days for which the concern worked double shift or triple shift, as the case may be, bears to the normal number of working days during the year. For this purpose, the normal 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 inscription of the letters "N.E.S.D." (meaning "No Extra Shift Depreciation") against it in sub-items above and also in respect of the following items of machinery and plant to which the general rate of depreciation of [9][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 fan installations. (6) Hydraulic works, pipelines and sluices (7) Locomotives, rolling stocks, tramways and railways used by concerns, excluding railway concerns. (8) Mineral oil concerns — field operations: and so on...
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