5/19/2016

www.mca.gov.in/SearchableActs/Schedule2.htm

ScheduleII
(Seesection123)
USEFULLIVESTOCOMPUTEDEPRECIATION
PARTA
1.Depreciationisthesystematicallocationofthedepreciableamountofanassetover
itsusefullife.Thedepreciableamountofanassetisthecostofanassetorotheramount
substitutedforcost,lessitsresidualvalue.Theusefullifeofanassetistheperiodover
whichanassetisexpectedtobeavailableforusebyanentity,orthenumberofproduction
orsimilarunitsexpectedtobeobtainedfromtheassetbytheentity.
2.ForthepurposeofthisSchedule,thetermdepreciationincludesamortisation.
3.Withoutprejudicetotheforegoingprovisionsofparagraph1,
(i)Incaseofsuchclassofcompanies,asmaybeprescribedandwhosefinancial
statementscomplywiththeaccountingstandardsprescribedforsuchclassof
companiesundersection133theusefullifeofanassetshallnotnormallybedifferent
fromtheusefullifeandtheresidualvalueshallnotbedifferentfromthatasindicated
inPartC,providedthatifsuchacompanyusesausefullifeorresidualvaluewhichis
differentfromtheusefullifeorresidualvalueindicatedtherein,itshalldisclosethe
justificationforthesame.
(ii)Inrespectofothercompaniestheusefullifeofanassetshallnotbelonger
thantheusefullifeandtheresidualvalueshallnotbehigherthanthatprescribedin
PartC.
(iii)Forintangibleassets,theprovisionsoftheAccountingStandardsmentioned
undersubpara(i)or(ii),asapplicable,shallapply.
PARTB
4.Theusefullifeorresidualvalueofanyspecificasset,asnotifiedforaccounting
purposesbyaRegulatoryAuthorityconstitutedunderanActofParliamentorbytheCentral
Governmentshallbeappliedincalculatingthedepreciationtobeprovidedforsuchasset
irrespectiveoftherequirementsofthisSchedule.
PARTC
5.SubjecttoPartsAandBabove,thefollowingaretheusefullivesofvarioustangible
assets:
NatureofassetsUsefulLife
I.Buildings[NESD]
(a)Buildings(otherthanfactorybuildings)RCCFrameStructure60Years
(b)Buildings(otherthanfactorybuildings)otherthanRCCFrameStructure30Years
(c)Factorybuildingsdo
(d)Fences,wells,tubewells5Years
http://www.mca.gov.in/SearchableActs/Schedule2.htm

1/6

5/19/2016

www.mca.gov.in/SearchableActs/Schedule2.htm

(e)Others(includingtemporarystructure,etc.)3Years
II.Bridges,culverts,bunders,etc.[NESD]30Years
III.Roads[NESD]
(a)Carpetedroads
(i)CarpetedRoadsRCC10Years
(ii)CarpetedRoadsotherthanRCC5Years
(b)Noncarpetedroads3Years
IV.PlantandMachinery
(i)Generalrateapplicabletoplantandmachinerynotcoveredunder
specialplantandmachinery
(a)PlantandMachineryotherthancontinuousprocessplantnot
coveredunderspecificindustries15Years
(b)continuousprocessplantforwhichnospecialratehasbeen
prescribedunder(ii)below[NESD]8Years
(ii)SpecialPlantandMachinery
(a)PlantandMachineryrelatedtoproductionandexhibitionof
MotionPictureFilms
1.CinematographfilmsMachineryusedintheproductionand
exhibitionofcinematographfilms,recordingandreproducing
equipments,developingmachines,printingmachines,editing
machines,synchronizersandstudiolightsexceptbulbs13Years
2.Projectingequipmentforexhibitionoffilmsdo
(b)PlantandMachineryusedinglassmanufacturing
1.PlantandMachineryexceptdirectfireglassmeltingfurnaces
Recuperativeandregenerativeglassmeltingfurnaces13Years
2.PlantandMachineryexceptdirectfireglassmeltingfurnaces
Moulds[NESD]8Years
3.FloatGlassMeltingFurnaces[NESD]10Years
(c)PlantandMachineryusedinminesandquarriesPortable
undergroundmachineryandearthmovingmachineryusedin
opencastmining[NESD]8Years
(d)PlantandMachineryusedinTelecommunications[NESD]
1.Towers18Years
2.Telecomtransceivers,switchingcentres,transmissionand
othernetworkequipment13Years
3.TelecomDucts,Cablesandopticalfibre18Years
4.Satellitesdo
(e)PlantandMachineryusedinexploration,productionand
http://www.mca.gov.in/SearchableActs/Schedule2.htm

2/6

5/19/2016

www.mca.gov.in/SearchableActs/Schedule2.htm

refiningoilandgas[NESD]
1.Refineries25Years
2.Oilandgasassets(includingwells),processingplantandfacilitiesdo
3.PetrochemicalPlantdo
4.Storagetanksandrelatedequipmentdo
5.Pipelines30Years
6.DrillingRigdo
7.Fieldoperations(aboveground)Portableboilers,drillingtools,
wellheadtanks,etc.8Years
8.Loggersdo
(f)PlantandMachineryusedingeneration,transmissionanddistribution
ofpower[NESD]
1.Thermal/Gas/CombinedCyclePowerGenerationPlant40Years
2.HydroPowerGenerationPlantdo
3.NuclearPowerGenerationPlantdo
4.Transmissionlines,cablesandothernetworkassetsdo
5.WindPowerGenerationPlant22Years
6.ElectricDistributionPlant35Years
7.GasStorageandDistributionPlant30Years
8.WaterDistributionPlantincludingpipelinesdo
(g)PlantandMachineryusedinmanufactureofsteel
1.SinterPlant20Years
2.BlastFurnacedo
3.Cokeovensdo
4.Rollingmillinsteelplantdo
5.BasicoxygenFurnaceConverter25Years
(h)PlantandMachineryusedinmanufactureofnonferrousmetals
1.Metalpotline[NESD]40Years
2.Bauxitecrushingandgrindingsection[NESD]do
3.DigesterSection[NESD]do
4.Turbine[NESD]do
5.EquipmentsforCalcination[NESD]do
6.CopperSmelter[NESD]do
7.RollGrinder40Years
8.SoakingPit30Years
9.AnnealingFurnacedo
10.RollingMillsdo
11.EquipmentsforScalping,Slitting,etc.[NESD]do
http://www.mca.gov.in/SearchableActs/Schedule2.htm

3/6

5/19/2016

www.mca.gov.in/SearchableActs/Schedule2.htm

12.SurfaceMiner,RipperDozer,etc.,usedinmines25Years
13.Copperrefiningplant[NESD]do
(i)PlantandMachineryusedinmedicalandsurgicaloperations[NESD]
1.ElectricalMachinery,Xrayandelectrotherapeuticapparatusand
accessoriesthereto,medical,diagnosticequipments,namely,
Catscan,UltrasoundMachines,ECGMonitors,etc.13Years
2.OtherEquipments.15Years
(j)PlantandMachineryusedinmanufactureofpharmaceuticalsand
chemicals[NESD]
1.Reactors20Years
2.DistillationColumnsdo
3.Dryingequipments/CentrifugesandDecantersdo
4.Vessel/storagetanksdo
(k)PlantandMachineryusedincivilconstruction
1.Concreting,Crushing,PilingEquipmentsandRoadMaking
Equipments12Years
2.HeavyLiftEquipments
Craneswithcapacityofmorethan100tons20Years
Craneswithcapacityoflessthan100tons15Years
3.Transmissionline,TunnelingEquipments[NESD]10Years
4.Earthmovingequipments9Years
5.OthersincludingMaterialHandling/Pipeline/Welding
Equipments[NESD]12Years
(l)PlantandMachineryusedinsaltworks[NESD]15Years
V.Furnitureandfittings[NESD]
(i)Generalfurnitureandfittings10Years
(ii)Furnitureandfittingsusedinhotels,restaurantsandboardinghouses,
schools,collegesandothereducationalinstitutions,librarieswelfare
centresmeetinghalls,cinemahousestheatresandcircusesand
furnitureandfittingsletoutonhireforuseontheoccasionofmarriages
andsimilarfunctions.8Years
VI.MotorVehicles[NESD]
1.Motorcycles,scootersandothermopeds10Years
2.Motorbuses,motorlorries,motorcarsandmotortaxiesusedin
abusinessofrunningthemonhire6Years
3.Motorbuses,motorlorriesandmotorcarsotherthanthoseused
inabusinessofrunningthemonhire8Years
4.Motortractors,harvestingcombinesandheavyvehiclesdo
http://www.mca.gov.in/SearchableActs/Schedule2.htm

4/6

5/19/2016

www.mca.gov.in/SearchableActs/Schedule2.htm

5.Electricallyoperatedvehiclesincludingbatterypoweredorfuel
cellpoweredvehicles8Years
VII.Ships[NESD]
1.Oceangoingships
(i)BulkCarriersandlinervessels25Years
(ii)Crudetankers,productcarriersandeasychemicalcarrierswithor
withoutconventionaltankcoatings.20Years
(iii)ChemicalsandAcidCarriers:
(a)WithStainlesssteeltanks25Years
(b)Withothertanks20Years
(iv)Liquifiedgascarriers30Years
(v)Conventionallargepassengervesselswhichareusedforcruise
purposealsodo
(vi)Coastalserviceshipsofallcategoriesdo
(vii)Offshoresupplyandsupportvessels20Years
(viii)Catamaransandotherhighspeedpassengerforshipsorboatsdo
(ix)Drillships25Years
(x)Hovercrafts15Years
(xi)Fishingvesselswithwoodenhull10Years
(xii)Dredgers,tugs,barges,surveylaunchesandothersimilarships
usedmainlyfordredgingpurposes14Years
2.Vesselsordinarilyoperatingoninlandwaters
(i)Speedboats13Years
(ii)Othervessels28Years
VIII.AircraftsorHelicopters[NESD]20Years
IX.Railwayssidings,locomotives,rollingstocks,tramwaysand
railwaysusedbyconcerns,excludingrailwayconcerns[NESD]15Years
X.Ropewaystructures[NESD]15Years
XI.Officeequipment[NESD]5Years
XII.Computersanddataprocessingunits[NESD]
(i)Serversandnetworks6Years
(ii)Enduserdevices,suchas,desktops,laptops,etc.3Years
XIII.Laboratoryequipment[NESD]
(i)Generallaboratoryequipment10Years
(ii)Laboratoryequipmentsusedineducationalinstitutions5Years
XIV.ElectricalInstallationsandEquipment[NESD]10years
XV.Hydraulicworks,pipelinesandsluices[NESD]15Years
Notes.
http://www.mca.gov.in/SearchableActs/Schedule2.htm

5/6

5/19/2016

www.mca.gov.in/SearchableActs/Schedule2.htm

1."Factorybuildings"doesnotincludeoffices,godowns,staffquarters.
2.Where,duringanyfinancialyear,anyadditionhasbeenmadetoanyasset,or
whereanyassethasbeensold,discarded,demolishedordestroyed,thedepreciationon
suchassetsshallbecalculatedonaproratabasisfromthedateofsuchadditionor,asthe
casemaybe,uptothedateonwhichsuchassethasbeensold,discarded,demolishedor
destroyed.
3.Thefollowinginformationshallalsobedisclosedintheaccounts,namely:
(i)depreciationmethodsusedand
(ii)theusefullivesoftheassetsforcomputingdepreciation,iftheyaredifferent
fromthelifespecifiedintheSchedule.
4.UsefullifespecifiedinPartCoftheScheduleisforwholeoftheasset.Wherecost
ofapartoftheassetissignificanttototalcostoftheassetandusefullifeofthatpartis
differentfromtheusefullifeoftheremainingasset,usefullifeofthatsignificantpartshallbe
determinedseparately.
5.Depreciableamountisthecostofanasset,orotheramountsubstitutedforcost,less
itsresidualvalue.Ordinarily,theresidualvalueofanassetisofteninsignificantbutitshould
generallybenotmorethan5%oftheoriginalcostoftheasset.
6.TheusefullivesofassetsworkingonshiftbasishavebeenspecifiedintheSchedule
basedontheirsingleshiftworking.Exceptforassetsinrespectofwhichnoextrashift
depreciationispermitted(indicatedbyNESDinPartCabove),ifanassetisusedforanytime
duringtheyearfordoubleshift,thedepreciationwillincreaseby50%forthatperiodandin
caseofthetripleshiftthedepreciationshallbecalculatedonthebasisof100%forthat
period.
7.FromthedatethisSchedulecomesintoeffect,thecarryingamountoftheassetas
onthatdate
(a)shallbedepreciatedovertheremainingusefullifeoftheassetasperthis
Schedule
(b)afterretainingtheresidualvalue,shallberecognisedintheopeningbalance
ofretainedearningswheretheremainingusefullifeofanassetisnil.
8.Continuousprocessplantmeansaplantwhichisrequiredanddesignedtooperate
fortwentyfourhoursaday.

http://www.mca.gov.in/SearchableActs/Schedule2.htm

6/6