Depreciation
This query is : Resolved
16 January 2021
What is depreciation rate as per co act for Plant & Machinery and for equipment used in machinery?
06 July 2024
As per the Companies Act, 2013, the depreciation rates for Plant & Machinery and for equipment used in machinery are prescribed under Schedule II. Here are the depreciation rates applicable:
1. **Plant & Machinery**: The depreciation rate for Plant & Machinery is typically 15% per annum on a straight-line basis. However, there are specific categories of Plant & Machinery that have different rates prescribed under Schedule II. For example:
- For assets like molds and dies used in rubber and plastic goods factories, the rate is 30%.
- For assets like pollution control equipment, the rate is 100% if it is used exclusively for business purposes.
2. **Equipment used in machinery**: Equipment used in machinery is generally considered part of the Plant & Machinery category. Therefore, it would fall under the applicable depreciation rate for Plant & Machinery, which is 15% per annum, unless there are specific provisions or higher rates mentioned for certain types of equipment.
It's important to refer to Schedule II of the Companies Act, 2013, and any relevant amendments or notifications issued by the Ministry of Corporate Affairs (MCA) for precise and updated depreciation rates applicable to different categories of assets. Companies are required to apply these rates consistently and in accordance with the accounting standards prescribed under the Act.
1. **Plant & Machinery**: The depreciation rate for Plant & Machinery is typically 15% per annum on a straight-line basis. However, there are specific categories of Plant & Machinery that have different rates prescribed under Schedule II. For example:
- For assets like molds and dies used in rubber and plastic goods factories, the rate is 30%.
- For assets like pollution control equipment, the rate is 100% if it is used exclusively for business purposes.
2. **Equipment used in machinery**: Equipment used in machinery is generally considered part of the Plant & Machinery category. Therefore, it would fall under the applicable depreciation rate for Plant & Machinery, which is 15% per annum, unless there are specific provisions or higher rates mentioned for certain types of equipment.
It's important to refer to Schedule II of the Companies Act, 2013, and any relevant amendments or notifications issued by the Ministry of Corporate Affairs (MCA) for precise and updated depreciation rates applicable to different categories of assets. Companies are required to apply these rates consistently and in accordance with the accounting standards prescribed under the Act.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Under construction property in ITR
- Pass word to open justification report for Q1 for FY 2026-27
- Gift of mutual fund units to daughter
- PPF interest-As Exempt Income disclosure
- Upload Level ValidationITR3Category of Defect B/D
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Not able to file ITR
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
