Useful life

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sivaram (Querist)
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03 September 2018 what is the useful life in years for a newly purchased bicycle the company follows straight line method of depreciation
in Schedule II

Gokul Sharma

Gokul Sharma (Expert)
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03 September 2018 https://taxadda.com/depreciation-rates-as-per-companies-act-2013/

10 years SLM RATE 9.5%

sivaram

sivaram (Querist)
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03 September 2018 whether this falls under motor cycles, scooters and other mopeds?

Gokul Sharma

Gokul Sharma (Expert)
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04 September 2018 purchase price ?????????????????????

Aashok Kumar Sharma

Aashok Kumar Sharma

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02 August 2025 No, a **bicycle** is not classified under "motor cycles, scooters and other mopeds" because it is a non-motorized vehicle.

As per **Schedule II of the Companies Act, 2013**, the useful life for a **bicycle** is generally **5 years** with the **Straight Line Method (SLM)** applied.

To summarize:

| Asset | Useful Life (Years) | Depreciation Rate (SLM) |
| ------------------------------ | ------------------- | ----------------------- |
| Bicycle | 5 | 20% |
| Motor cycles, scooters, mopeds | 10 | 9.5% |

So for your **newly purchased bicycle**, use **5 years** as the useful life and depreciate accordingly.

If you want, I can help calculate depreciation for the asset.

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