Depreciation under SLM method

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Meghana Maggi (Querist)
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03 December 2024 If a company purchases a battery and an inverter is it considered a fixed asset?
If yes then what is its useful life as per Companies act 2013?
And both battery and inverter liable to depreciation?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 December 2024 Yes, both the battery and the inverter are considered fixed assets under the Companies Act 2013. This is because they are long-term investments used in the operations of the business.
As for their useful life and depreciation:

Inverter: The useful life of an inverter is typically 10 years.
Battery: The useful life of a battery is generally 3 to 5 years.

Both the battery and the inverter are subject to depreciation. The depreciation rates as per the Companies Act 2013 are:
Inverter: 18.10% (Written Down Value method) or 6.33% (Straight Line Method)
Battery: 18.10% (Written Down Value method) or 6.33% (Straight Line Method)