TMI BlogUSEFUL LIVES TO COMPUTE DEPRECIATIONX X X X Extracts X X X X X X X X Extracts X X X X ..... e, foregoing provisions of paragraph 1, (i) In case of such class of companies, as may be prescribed and whose financial statements comply with the accounting standards prescribed for such class of companies under section 133 the useful life of an asset shall not normally be different from the useful life and the residual value shall not be different from that as indicated in Part C, provided that if such a company uses a useful life or residual value which is different from the useful life or residual value indicated therein, it shall disclose the justification for the same. (ii) In respect of other companies the useful life of an asset shall not be longer than the useful life and the residual value shall not be higher than that presc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) Plant and Machinery other than continuous process plant not covered under specific industries 15 Years (b) continuous process plant for which no special rate has been prescribed under (ii) below [NESD] 8 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 bulbs 13 Years 2. Projecting equipment for exhibition of films -do- (b) Plant and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... distribution of power [NESD] 1. Thermal/ Gas/ Combined Cycle Power Generation Plant 40 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 Plant 22 Years 6. Electric Distribution Plant 35 Years 7. Gas Storage and Distribution Plant 30 Years 8. Water Distribution Plant including pipelines -do- (g) Plant and Machinery used in manufacture of steel 1. Sinter Plant 20 Years 2. Blast Furnace -do- 3. Coke ovens -do- 4. Rolling mill in stee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstruction 1. Concreting, Crushing, Piling Equipments and Road Making Equipments 12 Years 2. Heavy Lift Equipments Cranes with capacity of more than 100 tons 20 Years Cranes with capacity of less than 100 tons 15 Years 3. Transmission line, Tunneling Equipments [NESD] 10 Years 4. Earth-moving equipments 9 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 fittings 10 Years (ii) Furniture and fittings used in hotels, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e supply and support vessels 20 Years (viii) Catamarans and other high speed passenger for ships or boats -do- (ix) Drill ships 25 Years (x) Hovercrafts 15 Years (xi) Fishing vessels with wooden hull 10 Years (xii) Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes 14 Years 2. Vessels ordinarily operating on inland waters (i) Speed boats 13 Years (ii) Other vessels 28 Years VIII. Aircrafts or Helicopters [NESD] 20 Years IX. Railways sidings, locomotives, rolling stocks, tramways and railways used by concerns, excluding railway concerns [NESD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ost 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. 5. Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Ordinarily, the residual value of an asset is often insignificant but it should generally be not more than 5% of the original cost of the asset. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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