|
Nature of Assets
|
Single Shift
|
W.D.V
% |
S.L.M
% |
| I |
a) |
Buildings (other
than factory buildings) [NESD] |
5 |
1.63 |
| b) |
Factory Buildings |
10 |
3.34 |
| c) |
Purely Temporary Erections (such as
wooden structures) |
100 |
100 |
| II. Plant and Machinery |
| i) |
General rate applicable to,
| a) plant and machinery (not being
a ship) other than continuous process plant for which
no special rate has been prescribed under (ii) below |
Single Shift
Double Shift
Triple Shift |
|
13.91
20.87
27.82 |
4.75
7.42
10.34 |
| b) continuous process plant, other than those
for which no special rate has been prescribed under (ii) below
(NESD) |
15.33 |
5.28 |
| ii) |
Special rates |
| A. |
1. |
Cinematograph films — Machinery used
in the production and exhibition of cinematograph films [NESD]
— |
20 |
7.07 |
| a) |
Recording equipment, reproducing equipment, developing
machines, printing machines, editing machines, synchronisers
and studio lights except bulbs |
| b) |
Projecting equipment of film exhibiting concerns |
| 2. |
Cycles [NESD] |
20 |
7.07 |
| 3. |
Electrical machinery, X-ray and electrotherapeutic
apparatus and accessories thereto, medical, diagnostic equipments,
namely, Catscan, Ultrasound Machines, ECG Monitors etc. [NESD] |
20 |
7.07 |
| 4. |
Juice boiling pans (karhais) [NESD] |
20 |
7.07 |
| 5. |
Motor-cars, motor cycles, scooters
and other mopeds [NESD] |
25.89 |
9.5 |
| 6. |
Electrically operated vehicles including
battery powered or fuel cell powered vehicles [NESD] |
20 |
7.07 |
| 7. |
Sugarcane crushers (indigenous kolhus
and belans) [NESD] |
20 |
7.07 |
| 8. |
| Glass manufacturing
concerns except direct fire glass melting furnaces — Recuperative
and regenerative glass melting furnaces |
Single Shift
Double Shift
Triple Shift |
|
20
30
40 |
7.07
11.31
16.21 |
| 9. |
| Machinery used in
the manufacture of electronic goods or components |
Single Shift
Double Shift
Triple Shift |
|
15.62
23.42
31.23 |
5.38
8.46
11.87 |
| B. |
1. |
Aeroplanes, aeroengines, simulators,
visual system and quick engine change equipment [NESD] |
16.2 |
5.6 |
| 2. |
Concrete pipes manufacture Moulds
[NESD] |
30 |
11.31 |
| 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 furnaces — Moulds [NESD] |
| 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-moving machinery used in open cast mining
[NESD] |
| 9. |
Motor buses and motor lorries other
than those used in a business of running them on hire [NESD] |
| 9A |
Motor tractors, harvesting combines
[NESD] |
| 10. |
Patterns, dies and templates [[NESD] |
| 11. |
Ropeway structures — Ropeways, ropes
and trestle sheaves and connected parts [NESD] |
| 12. |
| Shoes and other leather goods factories
— Wooden lasts used in the manufacture of shoes. |
Single Shift
Double Shift
Triple Shift |
|
30
45
60 |
11.31
18.96
29.05 |
| C. |
1. |
Motor buses, motor lorries and motor taxies used
in a business or running them on hire [NESD] |
40 |
16.21 |
| 2. |
Rubber and plastic goods factories — Moulds [NESD] |
| 3. |
Data processing machines including computers
[NESD] |
| 4. |
Gas cylinders including valves and regulators
[NESD] |
| D |
1. |
Artificial silk manufacturing machinery
wooden parts |
100 |
100 |
| 2. |
Cinematography films — Bulbs of studio lights |
| 3. |
Flour mills — Rollers |
| 4. |
Glass manufacturing concerns — Direct fire glass
melting furnaces |
| 4A. |
Float Glass Melting Furnaces (NECD) |
27
|
10
|
| 5. |
Iron and Steel industries — Rolling mill rolls |
100 |
100 |
| 6. |
Match factories — Wooden match frames |
| 7. |
Mineral oil concerns —
a) 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 operations (distribution) - Kerbside pumps
including underground tanks and fittings
|
| 8. |
Mines and quarries —
a) Tubs, windings ropes, haulage ropes and sand stowing pipes
b) Safety lamps
|
| 9. |
Salt works — Salt pans, reservoirs and condensers,
etc., made of earthy, sandy or clay material or any other similar
material |
| 10. |
Sugar works — Rollers |
| III |
Furniture and Fittings — |
| 1. |
General rates [NESD] |
18.1 |
6.23 |
| 2. |
Rate for furniture and fittings used
in hotels, restaurants and boarding houses; schools, colleges
and other educational institutions, libraries; welfare centres;
meeting halls, cinema houses; theatres and circus; and for furniture
and fittings let out on hire for use on the occasion of marriages
and similar functions [NESD] |
25.88 |
9.5 |
| IV |
Ships — |
| 1. |
Ocean-going ships — |
| i) Fishing vessels with wooden hull
[NESD] |
27.05 |
10 |
| ii) Dredgers, tugs, barges, survey
launches and other similar ships used mainly for dredging purposes
[NESD] |
19.8 |
7 |
| iii) Other ships [NESD] |
14.6 |
5 |
| 2. |
Vessels ordinarily operating
on inland waters — |
| i) Speed boats [NESD] |
20 |
7.07 |
| ii) Other vessels [NESD] |
10 |
3.34 |
W.D.V. : written down value
S.L.M. : straight line method |
Top
Notes :
| 1. |
"buildings" include roads,
bridges, culverts, wells and tube-wells. |
| 2. |
"factory building" does not
include offices, godowns, officers' and employees' quarters,
roads, bridges, culverts, wells and tube-wells. |
| 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 inscription 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 —
|
| a) |
Accounting machines. |
| b) |
Air-conditioning machinery including room air-conditioners. |
| c) |
Building contractor's machinery. |
| d) |
Calculating machines. |
| e) |
Electrical machinery — switchgear and instruments,
transformers and other stationery plant and wiring and fitting
of electric light and fan installations. |
| f) |
Hydraulic works, pipelines and sluices. |
| g) |
Locomotives, rolling stocks, tramways and railways
used by concerns, excluding railway concerns. |
| h) |
Mineral oil concerns field operations :
i) Prime mover
ii) Storage tanks (above ground)
iii) Pipelines (above ground)
iv) Jetties and dry docks
|
| i) |
Mineral oil concerns — field operations (distribution)
— kerbside pumps, including underground tanks and fittings. |
| j) |
Mineral oil concerns — refineries:
i) Prime movers
ii) LPG plant |
| k) |
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 |
| l) |
Neo-post franking machines |
| m) |
Office machinery |
| n) |
Overhead cables and wires |
| o) |
Railway sidings |
| p) |
Refrigeration plant containers, etc. (other than
racks) |
| q) |
Ropeways structures :
i) Trestle and station steel work
ii) Driving and tension gearing |
| r) |
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. |
| s) |
Surgical instruments |
| t) |
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. |
| u) |
Typewriters |
| v) |
Weighing machines |
| w) |
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%.
Where such items constitute more than 10% of total actual cost
of plant and machinery, normal Schedule XIV rates will apply. |
Provided that where the aggregate
actual cost of individual items of plant and machinery costing Rs.5000
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 II 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 claimed 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.
Top
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