Related to Rate of Depreciation

This query is : Resolved

abhijit majumder (Querist)
Follow

03 November 2025 Sir,
In an previously published article while along with life of asset, rate of Depreciation as per Schedule II of the Companies Act 2013 was mentioned.
However when I checked this with my bare act though I found life of assets, I cannot locate the Rate of Depreciation.
So my query is : Is there any reference on rate of depreciation on different kind of assets in any where under Companies Act 2013?
Regards
Abhijit

Manish

Manish (Expert)
Follow

04 November 2025 Depreciation Rate Calculation - Written Down Value (WDV) Method:

R = {1 – (s/c)^(1/n)} x 100

Where:
R = Rate of Depreciation (%)
n = Useful life of the asset (in years)
s = Scrap value (residual value)
c = Cost of the asset

Straight Line Method (SLM):
Under SLM, the calculation is simpler:
Depreciation Rate = (Cost – Residual Value) / (Useful Life x Cost) x 100

Schedule II of the Companies Act, 2013 does not contain depreciation rates. It only prescribes useful life. The computation of depreciation rate (when using WDV method) must be done using the formula mentioned above.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now