New rates of depreciation under Companies Act,2013

1) Professionals are facing problems in calculating new rates of depreciation under Companies Act,2013

2) To help them , we have calculated new rates of Depreciation under Companies Act based on useful life as provided in the Companies Act, 2013 & 5% residual value: This will be part of  book "Company Law Ready Reckoner"

3) Please communicate errors, if any.

SEC. 123 – SCHEDULE –II – PART C OF COMPANIES ACT,2013

USEFUL LIFE OF VARIOUS ASSETS & RATES OF DEPRECIATION UNDER SLM & WDV AS MANUALLY CALCULATED TAKING 5% AS RESIDUAL VALUE

			General Rates		Double Shift		Triple Shift
	Nature of Assets	Useful Life In Years	SLM Rate	WDV Rate	SLM Rate	WDV Rate	SLM Rate	WDV Rate
I	BUILDINGS [NESD]
(a)	Buildings (other than factory buildings) RCC Frame Structure	60	1.58%	4.87%	-	-	-	-
(b)	Buildings (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)	Others (including temporary structure, etc.)	3	31.67%	63.16%	-	-	-	-
II	BRIDGES, CULVERTS, BUNDERS, 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
	General rate applicable to plant and machinery not covered under special plant and machinery
(a)	Plant and Machinery other than continuous process plant not covered under specific industries	15	6.33%	18.10%	9.50%	27.16%	12.66%	36.21%
(b)	continuous process plant for which no special rate has been prescribed under (ii) below [NESD]	25	3.80%	11.29%	-	-	-	-
	Special Plant and Machinery
(a)	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 except bulbs	13	7.31%	20.58%	10.97%	30.87%	14.62%	41.16%
	2. Projecting equipment for exhibition of films	13	7.31%	20.58%	10.97%	30.87%	14.62%	41.16%
(b)	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%	10.97%	30.87%	14.62%	41.16%
	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%	-	-	-	-
(c)	Plant and Machinery used in mines and quarries—Portable underground machinery and earth moving machinery used in open cast mining [NESD]	8	11.88%	31.23%	-	-	-	-

			General Rates		Double Shift		Triple Shift
	Nature of Assets	Useful Life In Years	SLM Rate	WDV Rate	SLM Rate	WDV Rate	SLM Rate	WDV Rate
(d)	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%	-	-	-	-
(e)	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%	-	-	-	-
(f)	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%	-	-	-	-
(g)	Plant and Machinery used in manufacture of steel
	1. Sinter Plant	20	4.75%	13.91%	7.13%	20.87%	9.50%	27.82%
	2. Blast Furnace	20	4.75%	13.91%	7.13%	20.87%	9.50%	27.82%
	3. Coke ovens	20	4.75%	13.91%	7.13%	20.87%	9.50%	27.82%
	4. Rolling mill in steel plant	20	4.75%	13.91%	7.13%	20.87%	9.50%	27.82%
	5. Basic oxygen Furnace Converter	25	3.80%	11.29%	5.70%	16.94%	7.60%	22.59%
(h)	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 [NESD]	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 Calcination [NESD]	40	2.38%	7.22%	-	-	-	-
	6. Copper Smelter [NESD]	40	2.38%	7.22%	-	-	-	-
	7. Roll Grinder	40	2.38%	7.22%	3.57%	10.82%	4.76%	14.43%
	8. Soaking Pit	30	3.17%	9.50%	4.76%	14.26%	6.34%	19.01%
	9. Annealing Furnace	30	3.17%	9.50%	4.76%	14.26%	6.34%	19.01%
	10. Rolling Mills	30	3.17%	9.50%	4.76%	14.26%	6.34%	19.01%
	11. Equipments for Scalping, Slitting , etc. [NESD]	30	3.17%	9.50%	-	-	-	-
	12. Surface Miner, Ripper Dozer, etc., used in mines	25	3.80%	11.29%	5.70%	16.94%	7.60%	22.59%
	13. Copper refining plant [NESD]	25	3.80%	11.29%	-	-	-	-

			General Rates		Double Shift		Triple Shift
	Nature of Assets	Useful Life In Years	SLM Rate	WDV Rate	SLM Rate	WDV Rate	SLM Rate	WDV Rate
(i)	Plant and Machinery used in medical and surgical operations [NESD]
	1. Electrical Machinery, X-ray and electrotherapeutic apparatus and accessories thereto, medical, diagnostic equipments,	13	7.31%	20.58%	-	-	-	-
	2. Other Equipments.	15	6.33%	18.10%	-	-	-	-
(j)	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%	-	-	-	-
(k)	Plant and Machinery used in civil construction
	1. Concreting, Crushing, Piling Equipments and Road Making Equipments	12	7.92%	22.09%	11.88%	33.14%	15.84%	44.18%
	2. Heavy Lift Equipments—
	Cranes with capacity of more than 100 tons	20	4.75%	13.91%	7.13%	20.87%	9.50%	27.82%
	Cranes with capacity of less than 100 tons	15	6.33%	18.10%	9.50%	27.16%	12.66%	36.21%
	3. Transmission line, Tunneling Equipments [NESD]	10	9.50%	25.89%	-	-	-	-
	4. Earth-moving equipments	9	10.56%	28.31%	15.84%	42.47%	21.12%	56.63%
	5. Others including Material Handling /Pipeline/Welding Equipments [NESD]	12	7.92%	22.09%	-	-	-	-
(l)	Plant and Machinery used in salt works [NESD]	15	6.33%	18.10%	-	-	-	-
V	FURNITURE AND FITTINGS [NESD]
(i)	General furniture and fittings	10	9.50%	25.89%	-	-	-	-
(ii)	Furniture and fittings used in hotels, restaurants and boarding houses,schools, colleges and other educational institutions, libraries; welfarecentres; 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]
	1. Motor cycles, scooters and other mopeds	10	9.50%	25.89%	-	-	-	-
	2. Motor buses, motor lorries, motor cars and motor taxies used in a business of running them on hire	6	15.83%	39.30%	-	-	-	-
	3. Motor buses, motor lorries and motor cars other than those used in a business of running them on hire	8	11.88%	31.23%	-	-	-	-
	4. Motor tractors, harvesting combines and heavy vehicles	8	11.88%	31.23%	-	-	-	-
	5. Electrically operated vehicles including battery powered or fuel cell powered vehicles	8	11.88%	31.23%	-	-	-	-

			General Rates		Double Shift		Triple Shift
	Nature of Assets	Useful Life In Years	SLM Rate	WDV Rate	SLM Rate	WDV Rate	SLM Rate	WDV Rate
VII	SHIPS [NESD]
	1. 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:
	(a) With Stainless steel tanks	25	3.80%	11.29%	-	-	-	-
	(b) With other tanks	20	4.75%	13.91%	-	-	-	-
	(iv) Liquified 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 purposes	14	6.79%	19.26%	-	-	-	-
	2. 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 SIDINGS, 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 EQUIPMENT [NESD]	5	19.00%	45.07%	-	-	-	-
XII	COMPUTERS AND DATA PROCESSING UNITS [NESD]
	(i) Servers and networks	6	15.83%	39.30%	-	-	-	-
	(ii) End user devices, such as, desktops, laptops, etc.	3	31.67%	63.16%	-	-	-	-
XIII	LABORATORY EQUIPMENT [NESD]
	(i) General laboratory equipment	10	9.50%	25.89%	-	-	-	-
	(ii) Laboratory equipments used in educational institutions	5	19.00%	45.07%	-	-	-	-
XIV	ELECTRICAL INSTALLATIONS AND EQUIPMENT [NESD]	10	9.50%	25.89%	-	-	-	-
XV	HYDRAULIC WORKS, PIPELINES AND SLUICES [NESD]	15	6.33%	18.10%	-	-	-	-

Warm Regards