Schedule II of Companies Act, 2013 – Depreciation

Schdule III – Part ‘C‘

The following are the useful lives of various tangible assets:

Nature of assetsUseful Life
I. Buildings [NESD] 
(a) Buildings (other than factory buildings) RCC Frame Structure60 Years
(b) Buildings (other than factory buildings) other than RCC Frame Structure30 Years
(c) Factory buildings-do-
(d) Fences, wells, tube wells5 Years
(e) Others (including temporary structure, etc.)3 Years
II. Bridges, culverts, bunders, etc. [NESD]30 Years
III. Roads [NESD] 
(a) Carpeted roads 
(i) Carpeted Roads-RCC10 Years
(ii) Carpeted Roads-other than RCC5 Years
(b) Non-carpeted roads3 Years
IV. Plant and Machinery 
(i) General rate applicable to plant and machinery not covered under special plant and machinery 
(a) Plant and Machinery other than continuous process plant not covered under specific industries15 Years
[(b) continuous process plant for which no special rate has been prescribed under (ii) below [NESD]]25 Years
(ii) Special Plant and Machinery 
(a) Plant and Machinery related to production and exhibition of Motion Picture Films 
1. Cinematograph films—Machinery used in the production and exhibition of cinematograph films, recording and reproducing equipments, developing machines, printing machines, editing machines, synchronizers and studio lights except bulbs13 Years
2. Projecting equipment for exhibition of films-do-
(b) Plant and Machinery used in glass manufacturing 
1. Plant and Machinery except direct fire glass melting furnaces — Recuperative and regenerative glass melting furnaces13 Years
2. Plant and Machinery except direct fire glass melting furnaces — Moulds [NESD]8 Years
3. Float Glass Melting Furnaces [NESD]10 Years
(c) Plant and Machinery used in mines and quarries—Portable underground machinery and earth moving machinery used in open cast mining [NESD]8 Years
(d) Plant and Machinery used in Telecommunications [NESD] 
1. Towers18 Years
2. Telecom transceivers, switching centres, transmission and other network equipment13 Years
3. Telecom—Ducts, Cables and optical fibre18 Years
4. Satellites-do-
(e) Plant and Machinery used in exploration, production and refining oil and gas [NESD] 
1. Refineries25 Years
2. Oil and gas assets (including wells), processing plant and facilities-do-
3. Petrochemical Plant-do-
4. Storage tanks and related equipment-do-
5. Pipelines30 Years
6. Drilling Rig-do-
7. Field operations (above ground) Portable boilers, drilling tools, well-head tanks, etc.8 Years
8. Loggers-do-
(f) Plant and Machinery used in generation, transmission and distribution of power [NESD] 
1. Thermal/ Gas/ Combined Cycle Power Generation Plant40 Years
2. Hydro Power Generation Plant-do-
3. Nuclear Power Generation Plant-do-
4. Transmission lines, cables and other network assets-do-
5. Wind Power Generation Plant22 Years
6. Electric Distribution Plant35 Years
7. Gas Storage and Distribution Plant30 Years
8. Water Distribution Plant including pipelines-do-
(g) Plant and Machinery used in manufacture of steel 
1. Sinter Plant20 Years
2. Blast Furnace-do-
3. Coke ovens-do-
4. Rolling mill in steel plant-do-
5. Basic oxygen Furnace Converter25 Years
(h) Plant and Machinery used in manufacture of non-ferrous metals 
1. Metal pot line [NESD]40 Years
2. Bauxite crushing and grinding section [NESD]-do-
3. Digester Section [NESD]-do-
4. Turbine [NESD]-do-
5. Equipments for Calcination [NESD]-do-
6. Copper Smelter [NESD]-do-
7. Roll Grinder40 Years
8. Soaking Pit30 Years
9. Annealing Furnace-do-
10. Rolling Mills-do-
11. Equipments for Scalping, Slitting , etc. [NESD]-do-
12. Surface Miner, Ripper Dozer, etc., used in mines25 Years
13. Copper refining plant [NESD]-do-
(i) Plant and Machinery used in medical and surgical operations [NESD] 
1. Electrical Machinery, X-ray and electrotherapeutic apparatus and accessories thereto, medical, diagnostic equipments, namely, Cat-scan, Ultrasound Machines, ECG Monitors, etc.13 Years
2. Other Equipments.15 Years
(j) Plant and Machinery used in manufacture of pharmaceuticals and chemicals [NESD] 
1. Reactors20 Years
2. Distillation Columns-do-
3. Drying equipments/Centrifuges and Decanters-do-
4. Vessel/storage tanks-do-
(k) Plant and Machinery used in civil construction 
1. Concreting, Crushing, Piling Equipments and Road Making Equipments12 Years
2. Heavy Lift Equipments— 
Cranes with capacity of more than 100 tons20 Years
Cranes with capacity of less than 100 tons15 Years
3. Transmission line, Tunneling Equipments [NESD]10 Years
4. Earth-moving equipments9 Years
5. others including Material Handling /Pipeline/Welding Equipments [NESD]12 Years
(l) Plant and Machinery used in salt works [NESD]15 Years
V. Furniture and fittings [NESD] 
(i) General furniture and fittings10 Years
(ii) Furniture and fittings used in hotels, restaurants and boarding houses, schools, colleges and other educational institutions, libraries; welfare centres; meeting halls, cinema houses; theatres and circuses; and furniture and fittings let out on hire for use on the occasion of marriages and similar functions.10 Years
VI. Motor Vehicles [NESD]10 Years
1. Motor cycles, scooters and other mopeds10 Years
2. Motor buses, motor lorries, motor cars and motor taxies used in a business of running them on hire6 Years
3. Motor buses, motor lorries and motor cars other than those used in a business of running them on hire8 Years
4. Motor tractors, harvesting combines and heavy vehicles-do-
5. Electrically operated vehicles including battery powered or fuel cell powered vehicles8 Years
VII. Ships [NESD] 
1. ocean-going ships 
(i) Bulk Carriers and liner vessels25 Years
(ii) Crude tankers, product carriers and easy chemical carriers with or without conventional tank coatings.20 Years
(iii) Chemicals and Acid Carriers: 
(a) With Stainless steel tanks25 Years
(b) With other tanks20 Years
(iv) Liquified gas carriers30 Years
(v) Conventional large passenger vessels which are used for cruise purpose also-do-
(vi) Coastal service ships of all categories-do-
(vii) Offshore supply and support vessels20 Years
(viii) Catamarans and other high speed passenger for ships or boats-do-
(ix) Drill ships25 Years
(x) Hovercrafts15 Years
(xi) Fishing vessels with wooden hull10 Years
(xii) Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes14 Years
2. Vessels ordinarily operating on inland waters— 
(i) Speed boats13 Years
(ii) Other vessels28 Years
VIII. Aircrafts or Helicopters [NESD]20 Years
IX. Railways sidings, locomotives, rolling stocks, tramways and railways used by concerns, excluding railway concerns [NESD]15 Years
X. Ropeway structures [NESD]15 Years
XI. Office equipment [NESD]5 Years
XII. Computers and data processing units [NESD] 
(i) Servers and networks6 Years
(ii) End user devices, such as, desktops, laptops, etc.3 Years
XIII. Laboratory equipment [NESD] 
(i) General laboratory equipment10 Years
(ii) Laboratory equipments used in educational institutions5 Years
XIV. Electrical Installations and Equipment [NESD]10 years
XV. Hydraulic works, pipelines and sluices [NESD]15 Years

Notes.—

1.“Factory buildings”does not include offices, godowns, staff quarters.

2. Where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciation on such assets shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such asset has been sold, discarded, demolished or destroyed.

3. The following information shall also be disclosed in the accounts, namely:—

(i) depreciation methods used; and

(ii) the useful lives of the assets for computing depreciation, if they are different from the life specified in the Schedule.

3[4(a) Useful life specified in Part C of the Schedule is for whole of the asset. Where cost of a part of the asset is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part shall be determined separately.

(b) The requirement under sub-paragraph (a) shall be voluntary in respect of the financial year commencing on or after the 1st April, 2014 and mandatory for financial statements in respect of financial years commencing on or after the 1st April, 2015]

5. 2[Omitted].

6. The useful lives of assets working on shift basis have been specified in the Schedule based on their single shift working. Except for assets in respect of which no extra shift depreciation is permitted (indicated by NESD in Part C above), if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of the triple shift the depreciation shall be calculated on the basis of 100% for that period.

7. From the date this Schedule comes into effect, the carrying amount of the asset as on that date—

(a) shall be depreciated over the remaining useful life of the asset as per this Schedule;

(b) after retaining the residual value, 4[may be recognised] in the opening balance of retained earnings where the remaining useful life of an asset is nil.

8. “Continuous process plant’’ means a plant which is required and designed to operate for twenty- four hours a day.