Rates of Depreciation under Companies Act, 2013 [Depreciation Rate Chart]

Depreciation Rate Chat 2023-24

As per Part “C” of Schedule II of the Companies Act, 2013 after making following assumptions:

  1. The useful life to compute depreciation of the asset has been taken as per Part C of Schedule II

The residual value of an asset has been taken as 5% of the original cost of the asset

  Nature of Assets Useful LIFE Rate [SLM] Rate [WDV]
1 Buildings [NESD]
(a) Building (other than factory buildings) RCC Frame Structure 60 Years 1.58% 4.87%
(b) Building (other than factory buildings) other than RCC Frame Structure 30 Years 3.17% 9.50%
(c) Factory buildings 30 Years 3.17% 9.50%
(d) Fences, wells, tube wells 5 Years 19.00% 45.07%
(e) Other (including temporary structure, etc.) 3 Years 31.67% 63.16%
II Bridges, Culverts, Bunkers, Etc. [NESD] 30 Years 3.17% 9.50%
III Roads [NESD]      
(a)  Carpeted Roads      
(i) Carpeted Roads – RCC 10 Years 9.50% 25.89%
(ii) Carpeted Roads – other than RCC Years 19.00% 45.07%
(b) Non-carpeted roads 3 Years 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 15 Years 6.3 3% 18.10%
(ii) Continuous process plant for which no special rate has been prescribed under (ii) below 25 Years 11.88% 31.33%
(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 equipment’s, developing machines, printing machines. editing machines. synchronizers and studio lights 13 Years 7.31% 20.58%
2 Projecting equipment for exhibition of films 13 Years 7.3 1% 20.5 8%
(ii) Plant and Machinery used in glass      
1 Plant and Machinery except direct fire glass melting furnaces – Recuperative and regenerative glass melting furnaces 13 Years 7.3 1% 20.58%
2 Plant and Machinery except direct fire glass melting furnaces – Moulds [NESD] 8 Years 11.88% 31.23%
3 Float Glass Melting Furnaces [NESD] 10 Years 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 Years 11.88% 31.23%
(iv) Plant and Machinery used in Telecommunications [NESD]      
1 Towers 18 Years 5.28% 15.33%
2 Telecom transceivers, switching centres, transmission and other network equipment 13 Years 7.31% 20.58%
3 Telecom – Ducts, Cables and optical fibre 18 Years 5.28% 15.33%
4 Satellites 18 Years 5.28% 15.33%
(v) Plant and Machinery used in exploration, production and refining oil and gas [NESD]      
1 Refineries 25 Years 3.80% 11.29%
2 Oil and gas assets (including wells), processing plant and facilities 25 Years 3.80% 11.29%
3 Petrochemical Plant 25 Years 3.80% 11.29%
4 Storage tanks and related equipment 25 Years 3.80% 11.29%
5 Pipelines 30 Years 3.17% 9.50%
6 Drilling Rig 30 Years 3.17% 9.50%
7 Field operations (above ground) Portable boilers, drilling tools, well-head tanks, etc. 8 Years 11.88% 31.23%
8 Loggers 8 Years 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 Years 2.38% 7.22%
2 Hydro Power Generation Plant 40 Years 2.38% 7.22%
3 Nuclear Power Generation Plant 40 Years 2.38% 7.22%
4 Transmission lines, cables and other network assets 40 Years 2.38% 7.22%
5 Wind Power Generation Plant 22 Years 4.32% 12.73%
6 Electric Distribution Plant 35 Years 2.7 1% 8.20%
7 Gas Storage and Distribution Plant 30 Years 3.17% 9.50%
8 Water Distribution Plant including pipelines 30 Years 3.17% 9.50%
(vii)  Plant and Machinery used in manufacture of      
1 Sinter Plant 20 Years 4.75% 13.91%
2 Blast Furnace 20 Years 4.75% 13.91%
3 Coke Ovens 20 Years 4.75% 13.91%
4 Rolling mill in steel plant 20 Years 4.75% 13.91%
5 Basic Oxygen Furnace Converter 25 Years 3.80% 11.29%
(viii) Plant and Machinery used in manufacture of non-ferrous metals      
1 Metal pot line [NESD] 40 Years 2.38% 7.22%
2 Bauxite crushing and grinding section 40 Years 2.38% 7.22%
3 Digester Section [NESD] 40 Years 2.38% 7.22%
4 Turbine [NESD] 40 Years 2.38% 7.22%
5 Equipment for Calcinations [NESD] 40 Years 2.38% 7.22%
6 Copper Smelter [NESD] 40 Years 2.38% 7.22%
7 Roll Grinder 40 Years 2.38% 7.22%
8 Soaking Pit 30 Years 3.17% 9.50%
9 Annealing Furnace 30 Years 3.17% 9.50%
10 Rolling Mills 30 Years 3.17% 9.50%
11 Equipment for Scalping, Slitting, etc. [NSED] 30 Years 3.17% 9.50%
12 Surface Miner, Ripper Dozer, etc. used in mines 25 Years 3.80% 11.29%
13 Copper refining plant [NSED] 25 Years 3.80% 11.29%
(ix) Plant and Machinery used in medical and surgical operations [NESD] 13 Years 7.31% 20.58%
1 Electrical Machinery, X-ray and electrotherapeutic apparatus and accessories thereto, medical, diagnostic equipment, namely, Cat-scan, Ultrasound Machines, ECG Monitors, etc. 13 Years 7.31% 20.58%
2 Other Equipment 15 Years 6.33% 18.10%
(x) Plant and Machinery used in manufacture of pharmaceuticals and chemicals [NESD]      
1 Reactors 20 Years 4.75% 13.9 1%
2 Distillation Columns 20 Years 4.75% 13.9 1%
3 Drying equipments / Centrifuges and Decanters 20 Years 4.75% 13.9 1%
4 Vessel/Storage tanks 20 Years 4.75% 13.9 1%
(xi) Plant and Machinery used in civil construction      
1 Concreting, Crushing, Piling Equipments and Road Making Equipments 12 Years 7.92% 22.09%
2 Heavy Lift Equipments—      
  >> Cranes with capacity more than 100 tons 20 Years 4.75% 13.91%
  >> Cranes with capacity less than 100 tons 15 Years 6.33% 18.10%
3 Transmission line, Tunneling Equipment [NESD] 10 Years 9.50% 25.89%
4 Earth-moving equipments 9 Years 10.56% 28.31%
5 Others including Material Handling/Pipeline/Welding Equipments [NESD] 12 Years 7.92% 22.09%
(xii) Plant and Machinery used in salt works [NESD] 15 Years 6.33% 18.10%
(V) Furniture and Fittings [XESD]      
(a) General furniture and fittings 10 Years 9.50% 25.89%
(b) Furniture and fittings used in hotels, restaurants and boarding houses, schools, colleges and other education institutions, libraries, welfare centres, meeting halls, cinema houses, theatres and circuses and furniture and fittings let out on hire for used on occasion of marriages and similar functions 8 Years 11.88% 31.23%
VI Motor Vehicles [NESD]      
(a) Motor cycles. scooters and other mopeds 10 Years 9.50% 25.89%
(b) Motor buses, motor lorries, motor cars and motor taxies used in a business of running them on hire 6 Years 15.83% 39.30%
(c) Motor buses, motor lorries, motor cars and motor taxies other than those used in a business of running them on 8 Years 11.88% 31.23%
(d) Motor tractors, harvesting combines and heavy
vehicles
8 Years 11.88% 31.23%
(e) Electrically operated vehicles including battery powered or fuel cell powered vehicles 8 Years 11.88% 31.23%
VII Ships [NESD]      
(a) Ocean-going ships      
(i) Bulk Carriers and liner vessels 25 Years 3.80% 11 .29%
(ii) Crude tankers, product carriers and easy chemical carriers with or without conventional 20 Years 4.75% 13.91%
(iii) Chemicals and Acid Carriers      
1 With Stainless steel tanks 25 Years 3.80% 11.29%
2 With other tanks 20 Years 4.75% 13.9 1%
(iv) Liquefied gas carriers 30 Years 3.17% 9.50%
(v) Conventional large passenger vessels which are used for cruise purpose also 30 Years 3.17% 9.50%
(vi) Coastal service ships of all categories 30 Years 3.17% 9.50%
(vii) Offshore supply and support vessels 20 Years 4.75% 13.9 1%
(viii) Catamarans and other high speed passenger for ships or boats 20 Years 4.75% 13.9 1%
(ix) Drill ships 25 Years 3.80% 11.29%
(x) Hovercrafts 15 Years 6.33% 18.10%
(xi) Fishing vessels with wooden hull 10 Years 9.50% 25.89%
(xii) Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging 14 Years 6.79% 19.26%
(b) Vessels ordinarily operating on inland waters      
(i) Speed boats 13 Years 7.3 1% 20.58%
(ii) Other vessels 28 Years 3.39% 10.15%
VIII Aircrafts or Helicopters [NESD] 20 Years 4.75% 13.91%
IX Railway siding. locomotives, rolling stocks, tramways and railway used by concerns, excluding railway 15 Years 6.33% 18.10%
X Ropeway structures [NESD] 15 Years 6.33% 18.10%
XI Office equipment [NESD] 5 Years 19.00% 45.07%
XII Computers and data processing units INESDI      
(a) Servers and networks Years 15.83% 39.30%
(b) End user devices, such as, desktops. laptops, etc. 3 Years 3 1.67% 63.16%
XIII Laboratory equipment [NESD]      
(a) General laboratory equipment 10 Years 9.50% 25.89%
(b) Laboratory equipments used in education institutions 5 Years 19.00% 45 .07%
XIV Electrical Installations and Equipment [NESD] 10 Years 9.50% 25.89%
XV Hydraulic woks, pipelines and sluices [NESD] 15 Years 6.33% 18.10%
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The useful life of an asset shall not be longer than the useful life specified in Part ‘C’ and the residual value of an asset shall not be more than 5% of the original cost of the asset. However, where a company uses a useful life or residual value of the asset which is different from the above limits, justification for the difference shall be disclosed in its financial statement.

Notes.—

  1. “Factory buildings” does not include offices, godowns, staff quarters.
  2. 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.
  3. The following information shall also be disclosed in the accounts, namely:— (i) depreciation methods used; and (ii) the useful lives of the assets for computing depreciation, if they are different from the life specified in the Schedule.
  4. Useful life specified in Part C of the Schedule is for whole of the asset. Where cost of a part of the asset is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part shall be determined separately.
  5. Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Ordinarily, the residual value of an asset is often insignificant but it should generally be not more than 5% of the original cost of the asset.
  6. The useful lives of assets working on shift basis have been specified in the Schedule based on their single shift working. Except for assets in respect of which no extra shift depreciation is permitted (indicated by NESD in Part C above), if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of the triple shift the depreciation shall be calculated on the basis of 100% for that period.
  7. From the date this Schedule comes into effect, the carrying amount of the asset as on that date—
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a. shall be depreciated over the remaining useful life of the asset as per this Schedule;

b.  after retaining the residual value, shall be recognised in the opening balance of retained earnings where the remaining useful life of an asset is nil.

“Continuous process plant” means a plant which is required and designed to operate for twenty-four hours a day.

Intangible asset

For intangible assets, the provisions of the accounting standards applicable for the time being in force shall apply, except in case of intangible assets (Toll Roads) created under ‘Build, Operate and Transfer’, ‘Build, Own, Operate and Transfer’ or any other form of public private partnership route in case of road projects. Amortisation in such cases may be done as prescribed in para 3(ii) of Part A of Schedule II.

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