Depreciation Rate CHart
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, 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:
(i ) depreciation methods 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 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 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.
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:
(a ) 8 [* * *]
(b ) Prime movers
(c ) 8 [* * *]
(d ) Storage tanks (above ground)
(e ) Pipelines (above ground)
(f ) Jetties and dry docks
(9 ) Mineral oil concerns—field operations (distribution)—kerbside pumps, including underground tanks and fittings.
(10 ) Mineral oil concerns—refineries.
10 [(d ) LPG Plant]
(11 ) Mines and quarries.
(a ) Surface and underground machinery (other than electrical machinery and portable underground machinery)
(d ) 9 [* * *]
(e ) Shafts and inclines
(f ) Tramways on the surface
(12 ) Neo-post franking machines.
(13 ) Office machinery.
(14 ) Overhead cables and wires.
(15 ) Railway sidings.
(16 ) Refrigeration plant container, etc. (other than racks).
(17 ) Ropeway structures.
(a ) Trestle and station steel work.
(b ) 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.]
(24 ) 11 [* * *]
12 [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 per cent:]
13 [Provided that where the aggregate actual cost of individual items of plant and machinery costing Rs. 5,000 or 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.