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TMI BlogRates of depreciationX X X X Extracts X X X X X X X X Extracts X X X X ..... II. Plant and Machinery [2] [( i ) General rate applicable to, ( a ) plant and machinery (not being a ship) 13.91 per cent 4.75 per cent 20.87 per cent 7.42 per cent 27.82 per cent 10.34 per cent other than continuous process plant for which no special rate has been prescribed under ( ii ) below: ( b ) continuous process plant, [3] [* * *] for which no special rate has been prescribed under ( ii ) below. (NESD)] 15.33 per cent 5.28 per cent .. .. .. .. ( ii ) Special rates A. 1. Cinematograph films- Machiney used in the production and exhibition of cinematograp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.31 per cent 40 per cent 16.21 per cent 9. Machinery used in the manufacture of electronic goods and components. 15.62 per cent 5.38 per cent 23.42 per cent 8.46 per cent 31.23 per cent 11.87 per cent B. [5] [1. Aeroplanes, Aero Engines, Simulators, Visual System and Quick Engine Change Equipment (NESD) 16.2 per cent 5.6 per cent] 2. Concrete pipes manufacture Moulds (NESD) 30 per cent 11.31 per cent .. .. .. .. 3. Drum container manufacture dies (NESD) -do- -do- .. .. .. .. 4. Earth-moving machinery employed in heavy construction works, such as dams, tunnels, canals, etc. (NESD) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * *] 2. Motor buses, motor lorries and motor taxies used in a business of running them on hire (NESD) 40 per cent 16.21 per cent .. .. .. .. 3. Rubber and plastic goods factories Moulds (NESD) -do- -do- .. .. .. .. 4. Data processing machines including compu-ters (NESD) -do- -do- .. .. .. .. 5. Gas cylinders including valves and regulators (NESD) -do- -do- .. .. .. .. D. 1. Artificial silk manufacturing machinery wooden parts 100 per cent 100 per cent .. .. .. .. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .. .. .. III. Furniture and fittings [8] [1. General Rates (NESD) 18.1 per cent 6.33 per cent .. .. .. .. 2. Rate for 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 for furniture and fittings let out on hire for use on the occasion of marriages and similar functions. (NESD)] 25.88 per cent 9.5 per cent .. .. .. .. IV. Ships 1. Ocean-going ships- ( i ) Fishing vessels with wooden hull (NESD) 27.05 per cent 10 per cent .. .. .. .. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total Revenue shall be reviewed at the end of each financial year and the projected revenue shall be adjusted to reflect any changes in the estimate which will lead to the actual collection at the end of the concession period. 3. For Example:‑ Cost of creation of Intangible Assets ₹ 500/- Crores Total period of Agreement 20 Years Time use for creation of Intangible Assets 02 Years Intangible Assets to be amortized in 18 Years Let us assume that the Total revenue to be generated out of Intangible Assets over the Period would be ₹ 600 Crores, in the following manner:- Year No. Revenue (In Rs. Crores) Remarks Year 1 5 Actual Year 2 7.5 Estimate* Year 3 10 Estimate* Year 4 12.5 Estimate* Year 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g 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 which 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 inscription of the letters N.E.S.D. (meaning No Extra Shift Depreciation ) against i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 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.] [16] [* * *] [17] [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 depreciation at the rate of hundred per cent:] [18] [Provided that where the aggregate actual cost of individual items of plant and machinery costing ₹ 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.] -------------------------------------------- Notes:- [1] Inserted by the Companies (Amendment) Act, 1988, w.r.e.f. 2-4-1987. [2] Substituted by Notification No. GSR 756(E), dated 16-12-1993. [3] Omitted by Notification No. GSR 101(E), dated 1- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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