Depreciation Rate as per Companies Act

Page no : 7

(Guest)

PLEASE GET ME THE DEPRECIATION RATE AS PER COMPANIES ACT

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(Guest)

Originally posted by :Guest
"	Depreciation Rates as per Companies Act,1956	"

(Guest)

please send me depreciation rate

venkatadri (accountant) (20 Points)
Replied 27 September 2008

Originally posted by :Shekar
"	Hi..Please find rate of depn from 76 th page of attached file in the below linkhttps://www.mca.gov.in/MinistryWebsite/dca/actsbills/pdf/Companies_Act_1956_Part_2.pdf	"

(Guest)

Pls explain me in detail the depreciation/ Subsidy allowed on windmill

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Taxguy (Consultant) (3383 Points)
Replied 01 October 2008

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 5.00 1.63

factory Buildings) [NSED]

(b) FACTORY BUILDINGS 10.00 3.34

such as wooden structures.

II PLANT AND MACHINERY

(i) General rate applicable to

(a) plant & machinery (not 13.91 4.75 20.87 7.42 27.82 10.34

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 5.28

2[***] for which no special

rate has been prescribed

under (ii) below [NSED]

(ii)Special Rate

A. 1. Cinematography films- 20.00 7.07

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 7.07

3 Electrical machinery, X-ray 20.00 7.07

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 7.07

[NSED]

5 Motor-cars, motor-cycles, 25.89 9.5

scooters & other mopeds[NSED]

6 Electrically operated 20.00 7.07

vehicles including battery

powered vehicles [NSED]

7 Sugarcane crushers(indigen- 20.00 7.07

Ous kolhus & beans) [NSED]

8 Glass manufacturing concerns 20.00 7.07 30.00 11.31 40.00 16.21

except direct fire glass

melting furnaces-

Recuperative and regenerative

glass melting furnaces

9 Machinery used in the 15.62 5.38 23.42 8.46 31.23 11.87

manufacture of electronic

goods and components

B.1 [Aeroplanes, aero engines, 16.2 5.6

simulators, Visual System

and quick engine change

Equipment [NSED]

2 Concrete pipes manufacture- 30.00 11.31

Moulds [NSED]

3 Drum containers manufacture- 30.00 11.31

Moulds [NSED]

4 Earth-moving machinery 30.00 11.31

employed in heavy construction

works, such as dams, tunnels,

canals, etc. [NSED]

5 Glass manufacturing concerns 30.00 11.31

except direct fire glass

melting furnaces-Moulds 30.00 11.31

[NSED]

6 Moulds in iron foundries 30.00 11.31

[NSED]

7 Mineral oil concerns-Field 30.00 11.31

operations(above ground)-

Portable boilers, drilling

tools, well-head tanks,

rigs, etc.[NSED]

8 Mines and quarries-Portable 30.00 11.31

underground machinery and

earth-moving machinery used

in open caste mining[NSED]

9 Motor buses and motor 30.00 11.31

lorries other than those

used in a business of

running them on hire[NSED]

9A Motor tractors, harvesting 30.00 11.31

combines[NSED]

10 Patterns, dies and 30.00 11.31

templates[NSED]

11 Ropeway structures-Ropeways, 30.00 11.31

ropes and trestle sheaves

and connected parts[NSED]

12 Shoe and other leather goods 30.00 11.31 45.00 18.96 60.00 29.05

fabrics-Wooden lasts used in

the manufacture of shoes

C. 1. [** ** **] 40.00 16.21

2. Motor buses, motor lorries 40.00 16.21

and motor taxis used in

a business of running

them on hire [NESD]

3. Rubber and plastic goods 40.00 16.21

factories-Moulds[NESD]

4. Data processing machines

including computers[NESD]

5. Gas cylinders including 40.00 16.21

valves and regulators[NESD]

D. 1.Artificial silk 100 100

manufacturing machinery

with Wooden parts

2. Cinematograph films-Bulbs 100 100

of studio lights

3. Flour mills-Rollers 100 100

4. Glass manufacturing 100 100

concerns-Direct fire glass

Melting Furnaces

4A. Flot Glass Melting Furnaces 27.00 10.00

(NESD)

5. Iron and Steel industries- 100 100

Rolling mill rolls

6. Match factories-Wooden 100 100

match frames

7. Mineral oil concerns- (a) 100 100

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 100 100

9. a. Tubs, winding ropes, 100 100

haulage ropes and sand

Stowing pipes

b Safety Lamps

10. Salt works-Salt pans, 100 100

reservoirs and condensers

Etc. made of earthy, sandy

or clay material or Any

other similar material

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 27.05 10.00

i) Fishing vessels with

wooden hull [NESD]

ii) Dredgers, tugs, barges, 19.8 7.00

survey launches and Other

similar ships used mainly

for dredging Purposes [NESD]

iii)Other ships [NESD] 14.6 5.00

2. Vessels ordinarily operating

on inland waters-

i) Speed boats [NSED] 20.00 7.07

ii) Other vessels [NESD] 10.00 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 inscripttion 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

(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.