Depreciation

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Whether Higher rate of Depreciation is available under the Companies Act, on Ocean Going ships / vessels used in multiple shifts

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 Rates are as under as per Schedule XIV of the companies Act   

SCHEDULE XIV — RATES OF DEPRECIATION

1. Ocean-going ships —

Shifts

WDV %

SLM %

                         

Fishing vessels with wooden hull (NESD)

 

Single Shift

27.05

10     

 

Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes(NESD)

 

Single Shift

19.8

7

 

Other ships (NESD)

 

Single Shift

14.6

5

 

2. Vessels ordinarily operating on inland waters —

 

Speed boats (NESD)

 

Single Shift

20

7.07

 

Other vessels (NESD)

 

Single Shift

10

3.34

No, the benefit of Multiple Shift will not be given to Ship used for more than 1 shift as per the Explanatory Statement by Ministry of Corporate Affairs which specifically marks this assets as No Extra Shift Depreciation & hence the Rate given by Mr. Chintan Vasa is Correct. For any query feel free to raise.


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