Motor Vehicle Depreciation Rate As Per Companies Act

Buildings include roads bridges culverts wells and tubewells.

Motor vehicle depreciation rate as per companies act.

As per part c of schedule ii of the companies act 2013 nature of assets usefu l rate slm rate wdv. There is no existing rate of depreciation of 45 percent hence any motor vehicle purchased eligible for a 45 percent rate of depreciation shall form a new block of assets in machinery and plant. Also read depreciation rates as per companies act 1956. Motor buses motor lorries and motor cars other than those used in a business of running them on hire.

Vi motor vehicles nesd a motor cycles scooters and other mopeds b motor buses motor lorries motor cars and motor taxies. In the following table you will find the useful live with depreciation rate as per wdv and slm method. Higher rate have been prescribed only for motor cars motor buses motor lorries and motor taxis. Motor cycles scooters and other mopeds.

Now the depreciation is calculated on the basis of useful lives of the assets. 100 and residual value rs. Applicable from the assessment year 2004 05. A building shall be deemed to be a building used mainly for residential purposes if the built up floor area thereof used for residential purposes is not less than sixty six and two third per cent of its total built up floor area and shall include any such building in the factory.

For all other cases calculate depreciation rate using our depreciation calculator. A table is given below of depreciation rates applicable if the asset is purchased on or after 01 st april 2014 and useful life is considered as given in companies act 2013 and residual value as 5. Depreciation rate chart as per part c of schedule ii of the companies act 2013 sachin kumar gupta. Notes on depreciation rates on assets.

Depreciation rate chart under companies act 2013 for as per schedule ii applicable from 01 04 2014 read with section 123 which corresponds to schedule xiv of the companies act 1956. Motor buses motor lorries motor cars and motor taxies used in a business of running them on hire. Rate of depreciation shall be 40 if conditions of rule 5 2 are satisfied. Download also the depreciation rate as per companies act 2013 in pdf.

The rates are calculated by taking original cost of the assets rs. Motor vehicles nesd 1. Depreciation as per new companies act is allowed on the basis of useful life of assets and residual value. Depreciation rates are not given under the new companies act.