Rate of Depreciation Under Companies Act

[See sections 250 and 350]

   Single Shift  Double Shift  Triple Shift           Nature of Assets            ————  ————  ————
    WDV    SLM    WDV    SLM    WDV   SLM

(a) Buildings(Other than 5.00 1.63      
factory Buildings) [NSED]
(b) FACTORY BUILDINGS 10.00 3.34    
(c) Purely Temporary Erections 100 100    
such as wooden structures.

(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
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
6 Moulds in iron foundries 30.00 11.31
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
10 Patterns, dies and 30.00 11.31
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
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
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

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

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


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 inscription 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
(c) 8[***]
(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.

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