Depreciation rates as per Companies Act 2013 for new assets

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Depreciation as per new companies act is allowed on the basis of useful life of assets and residual value. Depreciation rates are not given under the new companies act. A table is given below of depreciation rates applicable if the asset is purchased on or after 01st April, 2014 and useful life is considered as given in companies act,2013 and residual value as 5%.
Latest Depreciation rate chart as per company act

Latest Depreciation Rates as per Company Act 2013

Nature of Assets Useful Life Rate % [SLM] Rate % [WDV]
(I) Buildings [NESD]
(a) Building (other than factory buildings) RCC Frame Structure 60     1.58     4.87
(b) Building (other than factory buildings) other than RCC Frame Structure 30     3.17    9.50
(c) Factory buildings 30     3.17    9.50
(d) Fences, wells, tube wells 5  19.00  45.07
(e) Other (including temporary structure, etc.) 3   31.67   63.16
(II) Bridges, culverts, bunkers, etc. [NESD]
 30     3.17    9.50
(III) Roads [NESD]
(a) Carpeted Roads
(i) Carpeted Roads – RCC 10    9.50  25.89
(ii) Carpeted Roads – other than RCC 5  19.00  45.07
(b) Non-carpeted roads 3   31.67   63.16
(IV) Plant and Machinery
(a) General rate applicable to Plant and Machinery not covered under Special Plant and Machinery
(i) Plant and Machinery other than continuous process plant not covered under specific industries 15     6.33   18.10
(ii) Continuous process plant for which no special rate has been prescribed under (b) below 8   11.88   31.23
(b) Special Plant and Machinery
(i) Plant and Machinery related to production and exhibition of Motion Picture Films
1 Cinematograph films – Machinery used in the production and exhibition of cinematograph films, recording and reproducing equipments, developing machines, printing machines, editing machines, synchronizers and studio lights 13     7.31  20.58
2 Projecting equipment for exhibition of films 13     7.31  20.58
(ii) Plant and Machinery used in glass manufacturing
1 Plant and Machinery except direct fire glass melting furnaces – Recuperative and regenerative glass melting furnaces 13     7.31  20.58
2 Plant and Machinery except direct fire glass melting furnaces – Moulds [NESD] 8   11.88   31.23
3 Float Glass Melting Furnaces [NESD] 10    9.50  25.89
(iii) Plant and Machinery used in mines and quarries Portable underground machinery and earth moving machinery used in open cast mining 8   11.88   31.23
(iv) Plant and Machinery used in Telecommunications [NESD]
1 Towers 18     5.28   15.33
2 Telecom transceivers, switching centres, transmission and other network equipment 13     7.31  20.58
3 Telecom – Ducts, Cables and optical fibre 18     5.28   15.33
4 Satellites 18     5.28   15.33
(v) Plant and Machinery used in exploration, production and refining oil and gas [NESD]
1 Refineries 25    3.80   11.29
2 Oil and gas assets (including wells), processing plant and facilities 25    3.80   11.29
3 Petrochemical Plant 25    3.80   11.29
4 Storage tanks and related equipment 25    3.80   11.29
5 Pipelines 30     3.17    9.50
6 Drilling Rig 30     3.17    9.50
7 Field operations (above ground) Portable boilers, drilling tools, well-head tanks, etc. 8   11.88   31.23
8 Loggers 8   11.88   31.23
(vi) Plant and Machinery used in generation, transmission and distribution of power [NESD]
1 Thermal / Gas / Combined Cycle Power Generation Plant 40     2.38     7.22
2 Hydro Power Generation Plant 40     2.38     7.22
3 Nuclear Power Generation Plant 40     2.38     7.22
4 Transmission lines, cables and other network assets 40     2.38     7.22
5 Wind Power Generation Plant 22     4.32   12.73
6 Electric Distribution Plant 35     2.71    8.20
7 Gas Storage and Distribution Plant 30     3.17    9.50
8 Water Distribution Plant including pipelines 30     3.17    9.50
(vii) Plant and Machinery used in manufacture of steel
1 Sinter Plant 20     4.75    13.91
2 Blast Furnace 20     4.75    13.91
3 Coke Ovens 20     4.75    13.91
4 Rolling mill in steel plant 20     4.75    13.91
5 Basic Oxygen Furnace Converter 25    3.80   11.29
(viii) Plant and Machinery used in manufacture of non ferrous metals
1 Metal pot line [NESD] 40     2.38     7.22
2 Bauxite crushing and grinding section 40     2.38     7.22
3 Digester Section [NESD] 40     2.38     7.22
4 Turbine [NESD] 40     2.38     7.22
5 Equipments for Calcinations [NESD] 40     2.38     7.22
6 Copper Smelter [NESD] 40     2.38     7.22
7 Roll Grinder 40     2.38     7.22
8 Soaking Pit 30     3.17    9.50
9 Annealing Furnace 30     3.17    9.50
10 Rolling Mills 30     3.17    9.50
11 Equipments for Scalping, Slitting, etc. [NSED] 30     3.17    9.50
12 Surface Miner, Ripper Dozer, etc. used in mines 25    3.80   11.29
13 Copper refining plant [NSED] 25    3.80   11.29
(ix) Plant and Machinery used in medical and surgical operations[NESD]
1 Electrical Machinery, X-ray and electrotherapeutic apparatus and accessories thereto, medical, diagnostic equipments, namely, Cat-scan, Ultrasound Machines, ECG Monitors, etc. 13     7.31  20.58
2 Other Equipments 15     6.33   18.10
(x) Plant and Machinery used in manufacture of pharmaceuticals and chemicals [NESD]
1 Reactors 20     4.75    13.91
2 Distillation Columns 20     4.75    13.91
3 Drying equipments / Centrifuges and Decanters 20     4.75    13.91
4 Vessel / Storage tanks 20     4.75    13.91
(xi) Plant and Machinery used in civil construction
1. Concreting, Crushing, Piling Equipments and Road Making Equipments 12     7.92  22.09
2 Heavy Lift Equipments –
– Cranes with capacity more than 100 tons 20     4.75    13.91
– Cranes with capacity less than 100 tons 15     6.33   18.10
3 Transmission line, Tunnelling Equipments [NESD] 10    9.50  25.89
4 Earth-moving equipments 9   10.56   28.31
5. Others including Material Handling /Pipeline/Welding Equipments [NESD] 12     7.92  22.09
(xii) Plant and Machinery used in salt works [NESD] 15     6.33   18.10
(V) Furniture and fittings [NESD]
(a) General furniture and fittings 10    9.50  25.89
(b) 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 circuses; and furniture and fittings let out on hire for use on the occasion of marriages and similar functions. 8   11.88   31.23
(VI) Motor Vehicles [NESD]
(a) Motor cycles, scooters and other mopeds 10    9.50  25.89
(b) Motor buses, motor lorries, motor cars and motor taxies used in a business of running them on hire 6   15.83  39.30
(c) Motor buses, motor lorries and motor cars other than those used in a business of running them on hire 8   11.88   31.23
(d) Motor tractors, harvesting combines and heavy vehicles 8   11.88   31.23
(e) Electrically operated vehicles including battery powered or fuel cell powered vehicles 8   11.88   31.23
(VII) Ships [NESD]
(a) Ocean-going ships
(i) Bulk Carriers and liner vessels 25    3.80   11.29
(ii) Crude tankers, product carriers and easy chemical carriers with or without conventional tank coatings. 20     4.75    13.91
(iii) Chemicals and Acid Carriers
1 With Stainless steel tanks 25    3.80   11.29
2 With other tanks 20     4.75    13.91
(iv) Liquefied gas carriers 30     3.17    9.50
(v) Conventional large passenger vessels which are used for cruise purpose also 30     3.17    9.50
(vi) Coastal service ships of all categories 30     3.17    9.50
(vii) Offshore supply and support vessels 20     4.75    13.91
(viii) Catamarans and other high speed passenger for ships or boats 20     4.75    13.91
(ix) Drill ships 25    3.80   11.29
(x) Hovercrafts 15     6.33   18.10
(xi) Fishing vessels with wooden hull 10    9.50  25.89
(xii) Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging 14     6.79   19.26
(b) Vessels ordinarily operating on inland waters
(i) Speed boats 13     7.31  20.58
(ii) Other vessels 28     3.39   10.15
(VIII) Aircrafts or Helicopters [NESD]
 20     4.75    13.91
(IX) Railways siding, locomotives, rolling stocks, tramways and railways used by concerns, excluding railway concerns [NESD]
 15     6.33   18.10
(X) Ropeway structures [NESD]
 15     6.33   18.10
(XI) Office equipments [NESD]
 5  19.00  45.07
(XII) Computers and data processing units [NESD]
(a) Servers and networks 6   15.83  39.30
(b) End user devices, such as, desktops, laptops, etc. 3   31.67   63.16
(XIII) Laboratory equipment [NESD]
(a) General laboratory equipment 10    9.50  25.89
(b) Laboratory equipmnets used in educational institutions 5  19.00  45.07
(XIV) Electrical Installations and Equipment [NESD]
 10    9.50  25.89
(XV) Hydraulic woks, pipelines and sluices [NESD]
 15     6.33   18.10

Key provisions related to depreciation and useful life of assets

  1. Exclusions for Factory Buildings:
    • “Factory buildings” do not include offices, godowns, or staff quarters.
  2. Depreciation for Additions or Disposals:
    • When an asset is added, sold, discarded, demolished, or destroyed during a financial year:
      • Depreciation is calculated pro rata:
        • From the date of addition.
        • Up to the date of disposal or other events.
  3. Disclosure Requirements in Accounts:
    • The following must be disclosed in financial statements:
      1. Depreciation methods used.
      2. Useful lives of the assets, if they differ from the lives specified in the Schedule.
  4. Useful Life for Significant Parts:
    • If a part of an asset is significant in cost and its useful life differs from the remaining asset:
      • Its useful life must be determined separately.
  5. Shift-Based Depreciation:
    • The Schedule specifies the useful lives of assets based on single-shift working.
    • Adjustments for multiple shifts:
      • Double-shift: Depreciation increases by 50%.
      • Triple-shift: Depreciation increases by 100%.
    • NESD Assets: For assets marked as NESD (No Extra Shift Depreciation), additional depreciation is not allowed.
  6. Definition of Continuous Process Plant:
    • A Continuous Process Plant is a plant that is:
      • Required and designed to operate 24 hours a day.
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