Depreciation

Rachit (Analyst) (908 Points)

26 March 2010

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

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2 Replies

Chintan Vasa (CA Final Student M.Com) (1241 Points)
Replied 26 March 2010

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

Mehul Jain (Articles) (25 Points)
Replied 26 March 2010

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.