Could anyone give the Depreciation rates of Income Tax & Companies Act in Excel Form pl (Updated)?
Regards,
K.Ramesh
Srinivas
(Student)
(53 Points)
Replied 20 September 2008
send me the Depriciation rates in co. act and IT act
| Originally posted by :ramesh | ||
| " | Could anyone give the Depreciation rates of Income Tax & Companies Act in Excel Form pl (Updated)? Regards, K.Ramesh |
" |
GIRISH
(SERVICE)
(23 Points)
Replied 23 September 2008
I want to no depreciation chart for income tax act&companies act
Rajender
(Chartered Accountant)
(34 Points)
Replied 30 September 2008
For cycle, deprciation rate will be 15% under income tax act
jiyalal Pandey
(Service)
(22 Points)
Replied 24 April 2009
| Originally posted by :Rajender | ||
| " | For cycle, deprciation rate will be 15% under income tax act | " |
CA Neha Jain
(ACA)
(108 Points)
Replied 25 April 2009
| Originally posted by :ramesh | ||
| " | Could anyone give the Depreciation rates of Income Tax & Companies Act in Excel Form pl (Updated)? Regards, K.Ramesh |
" |
Meeta
(student)
(48 Points)
Replied 27 April 2009
Can anyone tell the rate of depreciation of "Know-how" as per Companies Act ??? As per Income Tax Act, rate of depreciation of intangible assets is 25%
JANARDHANA RAO V
(GM ACCOUNTS)
(22 Points)
Replied 18 September 2009
| Originally posted by :Meeta Sukhija | ||
| " | Can anyone tell the rate of depreciation of "Know-how" as per Companies Act ??? As per Income Tax Act, rate of depreciation of intangible assets is 25% | " |
CA Ashanand Singla
(CMD)
(22 Points)
Replied 15 May 2010
Schedule XIV — Rates of Depreciation
|
Nature of Assets |
|
W.D.V(%) |
S.L.M(%) |
|
|
(1) |
|
(2) |
(3) |
|
|
I. |
|
Single Shift |
5 |
1.63 |
|
|
|
Single Shift |
10 |
3.34 |
|
|
|
Single Shift |
100 |
100 |
|
II. |
PLANT AND MACHINERY |
|
|
|
|
|
i. General rate applicable to, |
|
|
|
|
|
|
Single Shift |
13.91 |
4.75 |
|
Double Shift |
20.87 |
7.42 |
||
|
Triple Shift |
27.82 |
10.34 |
||
|
|
|
Single Shift |
15.33 |
5.28 |
|
|
ii. Special Rates |
|
|
|
|
|
A.
|
Single Shift |
20 |
7.07 |
|
|
|
Single Shift |
20 |
7.07 |
|
|
|
Single Shift |
20 |
7.07 |
|
|
|
Single Shift |
20 |
7.07 |
|
|
|
Single Shift |
25.89 |
9.5 |
|
|
|
Single Shift |
20 |
7.07 |
|
|
|
Single Shift |
20 |
7.07 |
|
|
|
Single Shift |
20 |
7.07 |
|
Double Shift |
30 |
11.31 |
||
|
Triple Shift |
40 |
16.21 |
||
|
|
|
Single Shift |
15.62 |
5.38 |
|
Double Shift |
23.42 |
8.46 |
||
|
Triple Shift |
31.23 |
11.87 |
||
|
|
B.
1. Aeroplanes, Aeroengines, simulators, visual system and quick engine change equipment (NESD)
2. Concrete pipes manufacture moulds (NESD)
3. Drum container manufacture dies (NESD)
4. Earth-moving machinery employed in heavy construction works, such as dams, tunnels, canals, etc. (NESD)
5. Glass manufacturing concerns except direct fire glass melting
6. Moulds in iron foundries (NESD)
7. Mineral oil concerns — Field operations (above ground) — portable boilers, drilling tools, well-head tanks, rigs, etc. (NESD)
8. Mines and quarries — Portable underground machinery and earth
9. Motor buses and motor lorries other than used in a business of
10. Patterns, dies and templates (NESD)
11. Ropeway structures — Rope-ways, ropes and trestle sheaves and connected parts (NESD) |
Single Shift |
30 |
11.31 |
|
Single Shift |
30 |
11.31 |
|
|
Double Shift |
45 |
18.96 |
||
|
Triple Shift |
60 |
29.05 |
||
|
|
C.
1. Motor buses, motor lorries and motor taxies used in a business or running them on hire (NESD)
2. Rubber and plastic goods factories — Moulds (NESD)
3. Data Processing Machines including computers (NESD)
4. Gas cylinders including valves and regulators (NESD) |
Single Shift |
40 |
16.21 |
|
|
D.
|
Single Shift |
100 |
100 |
|
Single Shift |
100 |
100 |
|
|
|
4a. Float Glass Melting Furnaces (NESD) |
Single Shift |
27 |
10 |
|
|
|
Single Shift |
100 |
100 |
|
III. |
FURNITURE AND FITTINGS |
|
|
|
|
|
|
Single Shift |
18.1 |
6.33 |
|
|
|
Single Shift |
25.88 |
9.5 |
|
IV. |
SHIPS — |
|
|
|
|
|
1. Ocean-going ships — |
|
|
|
|
|
|
Single Shift |
27.05 |
10 |
|
|
|
Single Shift |
19.8 |
7 |
|
|
|
Single Shift |
14.6 |
5 |
|
|
2. Vessels ordinarily operating on inland waters — |
|
|
|
|
|
|
Single Shift |
20 |
7.07 |
|
|
|
Single Shift |
10 |
3.34 |
Notes
1. "Buildings" include roads, bridges, culverts, wells and tubewells.
2. "Factory buildings" does not include offices, godowns, officers’ and employees’ quarters, roads, bridges, culverts, wells and tubewells.
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 kilometres 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 asset has been sold, discarded, demolished or destroyed.
5. The following information should also be disclosed in the accounts :
a. depreciation methods used; and
b. 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 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 inscripttion of the letters "NESD" (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 13.91% 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
i. Prime movers
ii. Storage tanks (above ground)
iii. Pipelines (above ground)
iv. Jetties and dry docks
9. Mineral oil concerns — field operations (distribution) — kerbside pumps, including underground tanks and fittings.
10. Mineral oil concerns refineries:
i. Prime movers
ii. LPG plant
11. Mines and quarries
i. Surface and underground machinery (other than electrical machinery and portable underground machinery).
ii. Head-gears
iii. Rails
iv. Shafts and inclines
v. Tramways on the surface
12. Neo-post franking machines
13. Office machinery
14. Overhead cables and wires
15. Railway sidings
16. Refrigeration plant containers, etc. (other than racks)
17. Ropeways structures
i. Trestle and station steel work
ii. Driving and tension gearing
18. 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.
19. Surgical instruments
20. Tramways, electric and tramways run by internal combustion engines — permanent way cars — car trucks, car bodies, electrical equipment and motors; tram cars including engines and gears.
21. Typewriters
22. Weighing machines
23. Wireless apparatus and gear, wireless appliances and accessories.
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 Rs. 5,000 shall be provided depreciation @ 100%.
Provided that where the aggregate actual cost of individual items of plant and machinery costing Rs. 5,000 or less constitutes more than 10% of the total actual cost of plant and machinery, rates of depreciation applicable to such item shall be the rates as specified in Item 11 of the Schedule.
The Research Committee of the Institute of Chartered Accountants of India has issued a Guidance Note on Significant issues arising from the amendments made by Notification dated 16-12-1993 issued by the Department of Company Affairs. The Guidance Note inter alia covers the following issues in supplement to the earlier Guidance Note and supersedes the same.
"Continuous Process Plant"
In case of the plant which is designed to operate for 24 hours a day but is required to shut down for some reasons like lack of demand or maintenance etc., the relevant rate for Continuous Process Plant would be applicable. However, in case of Plant which may work for 24 hours in a day but which is not technically designed to work as such, extra shift rates prescribed in the schedule would be applicable.
A Continuous Process Plant is distinguished from repetitive process plant or assembly-line type plants. Such plants do not involve significant shut down and/or start up costs. Hence they are not technically required and designed to operate 24 hours a day.
An ancillary equipment/plant which is an integral part of the Continuous Process Plant should be depreciated along with the main Continuous Process Plant.
It is not necessary for the whole concern to be defined as a Continuous Process Plant.
Depreciation on low value items :
In respect of the assets acquired prior to December 16, 1993, the amount of write off depends on the alternative chosen to depreciate the asset.
Depreciation be provided on pro rata basis from the date of additions even in case of low value items. However, a company can write off fully, low value items on the Consideration of Materiality after disclosing appropriately such accounting policies in the accounts.
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