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[See sections 250 and 350]




   Single Shift  Double Shift  Triple Shift           Nature of Assets            ------------  ------------  ------------

                                   WDV    SLM    WDV    SLM    WDV   SLM




(a)   Buildings(Other than         5.00    1.63               

    factory Buildings) [NSED]

(b)   FACTORY BUILDINGS            10.00   3.34                     

(c)   Purely Temporary Erections   100     100                      

    such as wooden structures.



(i)  General rate applicable to

(a)   plant & machinery (not       13.91   4.75 20.87  7.42   27.82   10.34

being a ship) other than

continuous process plant

for which no special rate

has been prescribed under

(ii) below

(b)   continuous process plant,    15.33   5.28

    2[***] for which no special

    rate has been prescribed

    under (ii) below [NSED]


(ii)Special Rate

A.    1. Cinematography films-     20.00   7.07      

    Machinery Used in the

    production and Exhibition

    of cinematography Films[NSED]

a.       Recording equipment,        

    reproducing Equipment,

    developing machines Printing       

    machines, editing Machines,

    synchronisers and Studio

    lights excepts bulb

b.       Projecting equipment of     

    Film exhibiting concerns

2           Cycles [NSED]                20.00   7.07

3           Electrical machinery, X-ray  20.00   7.07

    and electro-therapeutic

    apparatus and accessories

    thereto medical, diagnostic

    equipment, namely cat-scan,

    ultrasound machines, ECG

    monitors, etc.[NSED]

4           Juice boiling pans (karhais) 20.00  7.07


5           Motor-cars, motor-cycles,    25.89  9.5 

scooters & other mopeds[NSED]

6           Electrically operated        20.00  7.07

    vehicles including battery 

powered vehicles [NSED]

7           Sugarcane crushers(indigen-  20.00  7.07 

Ous kolhus & beans) [NSED]

8           Glass manufacturing concerns 20.00  7.07  30.00  11.31  40.00  16.21

except direct fire glass

melting furnaces-

Recuperative and regenerative

glass melting furnaces

9           Machinery used in the        15.62  5.38  23.42  8.46   31.23  11.87

manufacture of electronic

goods and components


   B.1 [Aeroplanes, aero engines,   16.2   5.6    

       simulators, Visual System

       and quick engine change

       Equipment [NSED]

2           Concrete pipes manufacture-  30.00  11.31           

Moulds [NSED]

3           Drum containers manufacture- 30.00  11.31  

Moulds [NSED]

4           Earth-moving machinery       30.00  11.31

    employed in heavy construction

    works, such as dams, tunnels,

    canals, etc. [NSED]

5           Glass manufacturing concerns 30.00  11.31

    except direct fire glass

    melting furnaces-Moulds      30.00  11.31


6           Moulds in iron foundries     30.00  11.31


7           Mineral oil concerns-Field   30.00  11.31

    operations(above ground)-   

    Portable boilers, drilling

    tools, well-head tanks,

    rigs, etc.[NSED]

8           Mines and quarries-Portable 30.00  11.31

    underground machinery and

    earth-moving machinery used

    in open caste mining[NSED]

9           Motor buses and motor        30.00  11.31

    lorries other than those

    used in a business of

    running them on hire[NSED]

9A  Motor tractors, harvesting   30.00  11.31


10       Patterns, dies and           30.00  11.31


11       Ropeway structures-Ropeways, 30.00  11.31

    ropes and trestle sheaves

    and connected parts[NSED]

12       Shoe and other leather goods 30.00  11.31  45.00 18.96  60.00  29.05

    fabrics-Wooden lasts used in

    the manufacture of shoes


C.       1. [** ** **]                40.00  16.21  

2.       Motor buses, motor lorries   40.00  16.21

    and motor taxis used in

    a business of running

    them on hire [NESD]

3.       Rubber and plastic goods     40.00  16.21


4.       Data processing machines

    including computers[NESD]

5.       Gas cylinders including      40.00  16.21

    valves and regulators[NESD]


D.    1.Artificial silk             100    100

    manufacturing machinery

    with Wooden parts

2.       Cinematograph films-Bulbs    100    100    

    of studio lights

3.       Flour mills-Rollers          100    100

4.       Glass manufacturing          100    100

    concerns-Direct fire glass

    Melting Furnaces

4A. Flot Glass Melting Furnaces 27.00  10.00


5.       Iron and Steel industries-   100    100

    Rolling mill rolls

6.       Match factories-Wooden       100    100

    match frames

7.       Mineral oil concerns- (a)    100    100

    Plant used in field operations

    (below ground)-Distribution

    returnable packages; (b)Plant

    used in field operations

    (below ground)but not including

    assets used in field operation

    distribution) Kerbsides pumps

    including underground tanks

    & fittings

8.       Mines And Querries           100    100

9.       a. Tubs, winding ropes,      100    100

    haulage ropes and sand

    Stowing pipes

    b  Safety Lamps

10.   Salt works-Salt pans,        100    100

    reservoirs and condensers

    Etc. made of earthy, sandy

    or clay material or Any

    other similar material

11.   Sugar works-Rollers          100    100



1           General Rates [NESD]         18.1   6.33

2           Rate for furniture & fittings

    used in hotels, restaurants

    and boarding houses; schools,

    colleges and other educational

    institutions, libraries; welfare

    centers meeting halls, cinema

    houses, theatres and circuses;

    and for furniture and fittings

    let out on hire for use on

    occasion of marriages and

    similar functions [NESD]     25.88   9.5




1.       Ocean-going ships            27.05   10.00                       

i)       Fishing vessels with

    wooden hull [NESD]

ii) Dredgers, tugs, barges,      19.8    7.00

    survey launches and Other

    similar ships used mainly

    for dredging Purposes [NESD]

iii)Other ships [NESD]           14.6    5.00

2.  Vessels ordinarily operating

    on inland waters-               

i)       Speed boats [NSED]           20.00   7.07

ii)   Other vessels [NESD]         10.00   3.34





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.

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 Kilo meters 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 assets has been sold, discarded, demolished or destroyed.

5.          The following information should also be disclosed in the accounts:-

i.       depreciation method 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 concerned worked double shift or triple shift, 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 the inscription of the letters “NESD” (meaning “no extra shift depreciation”) against it an sub-items above and also in respect of the following items of machinery and plant to which 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.

5.    Electrical machinery-switchgear and instruments, transformers and other stationary plant and wiring and fitting of electric light and fans installation.

6.    Hydraulic works pipelines and sluices.

7.    Locomotives, rolling stocks, tramways and railways used by 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 & dry docks

9.    Mineral oil concerns-field operations (distribution)-kerbside pumps, including underground tanks and fittings.

10.      Mineral oil concerns-refineries:

a) 9[***]

b) Prime Movers

c) 9[***]

d) LPG Plant

11. Mines and querries:

a)             Surface and underground machinery (other than electrical machinery and portable underground machinery)

b)             Head-gears

c)             9[***]

d)             Shafts and inclines

e)             Tramway on surface

11.      Neo post franking machine

12.      Office machinery

13.      Overhead cables and wires.

14.      Railway sidings.

15.      Refrigeration plant container, etc (other than racks).

16.      Ropeway structure:

a)          Trestle and station steel work.

b)          Driving and tention gearing.

17.      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.

18.      Surgical instruments.

19.      Tramways electric and Tramways run by internal combustion engines-permanent ways: cars-car trucks, car bodies, electrical equipment and motors; tram cars including engines and gears.

20.      Typewriters.

21.      Weighing machines

22.      Wireless apparatus and gear, wireless appliances and accessories.

23.      [***]


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 percent:


Provided that where the aggregate actual cost of individual items of plant and machinery costing Rs. 5,000 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.

Published by

CA Rahul Verma
Category Audit   Report

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