The amortisation amount or rate should ensure that the whole of the cost of the intangible asset is amortised over the concession period.
Revenue shall be reviewed at the end of each financial year and projected revenue shall be adjusted to reflect such changes, if any, in the estimates as will lead to the actual collection at the end of the concession period.
Assuming that the Total revenue to be generated out of Intangible Assets over the period would be Rs. 600 Crores, in the following manner:—
'*' will be actual at the end of financial year.
Based on this the charge for first year would be Rs. 4.16 Crore (approximately) (i.e. Rs. 5/Rs. 600 × Rs. 500 Crores) which would be charged to profit and loss and 0.83% (i.e. Rs. 4.16 Crore/Rs. 500 Crore × 100) is the amortisation rate for the first year.
Where a company arrives at the amortisation amount in respect of the said Intangible Assets in accordance with any method as per the applicable Accounting Standards, it shall disclose the same.]
Nature of assets |
Useful Life |
I.
|
Buildings [NESD]
|
|
|
(a) Buildings (other than factory buildings) RCC Frame Structure |
60 Years |
|
(b) Buildings (other than factory buildings) other than RCC Frame Structure |
30 Years |
|
(c) Factory buildings |
-do- |
|
(d) Fences, wells, tube wells |
5 Years |
|
(e) Others (including temporary structure, etc.) |
3 Years |
II.
|
Bridges, culverts, bunders, etc. [NESD]
|
30 Years |
III.
|
Roads [NESD]
|
|
|
(a) Carpeted roads |
|
|
|
10 Years |
|
(ii) | |
Carpeted Roads—other than RCC |
|
5 Years |
|
(b) Non-carpeted roads |
3 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 industries |
|
15 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 bulbs |
|
13 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 melt-ing furnaces |
|
13 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 under ground machinery and earth moving machinery used in open cast mining [NESD] |
|
8 Years |
|
(d) | |
Plant and Machinery used in Telecommunications [NESD] |
|
|
|
|
18 Years |
|
2. | |
Telecom transceivers, switching centres, transmission and other network equipment |
|
13 Years |
|
3. | |
Telecom—Ducts, Cables and optical fibre |
|
18 Years |
|
|
-do- |
|
(e) | |
Plant and Machinery used in exploration, production and refining oil and gas [NESD] |
|
|
|
|
25 Years |
|
2. | |
Oil and gas assets (including wells), processing plant and facilities |
|
-do- |
|
|
-do- |
|
4. | |
Storage tanks and related equipment |
|
-do- |
|
|
30 Years |
|
|
-do- |
|
7. | |
Field operations (above ground) Portable boilers, drilling tools, well-head tanks, etc. |
|
8 Years |
|
|
-do- |
|
(f) | |
Plant and Machinery used in generation, transmission and
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 |
|
|
|
|
20 Years |
|
|
-do- |
|
|
-do- |
|
4. | |
Rolling mill in steel plant |
|
-do- |
|
5. | |
Basic oxygen Furnace Converter |
|
25 Years |
|
(h) | |
Plant and Machinery used in manufacture of non-ferrous metals |
|
|
|
|
40 Years |
|
2. | |
Bauxite crushing and grinding section [NESD] |
|
-do- |
|
3. | |
Digester section [NESD] |
|
-do- |
|
|
-do- |
|
5. | |
Equipments for Calcination [NESD] |
|
-do- |
|
|
-do- |
|
|
40 Years |
|
|
30 Years |
|
|
-do- |
|
|
-do- |
|
11. | |
Equipments for Scalping, Slitting, etc. [NESD] |
|
-do- |
|
12. | |
Surface Miner, Ripper Dozer, etc., used in mines |
|
25 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 |
|
|
15 Years |
|
(j) | |
Plant and Machinery used in manufacture of pharmaceuticals and chemicals [NESD] |
|
|
|
|
20 Years |
|
|
-do- |
|
3. | |
Drying equipments/Centrifuges and Decanters |
|
-do- |
|
|
-do- |
|
(k) | |
Plant and Machinery used in civil construction |
|
|
|
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, 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. |
8 Years |
VI.
|
Motor Vehicles [NESD]
|
|
|
1. Motor cycles, scooters and other mopeds |
10 Years |
|
2. Motor buses, motor lorries, motor cars and motor taxies used in a business of running them on hire |
6 Years |
|
3. Motor buses, motor lorries and motor cars other than those used in a business of running them on hire |
8 Years |
|
4. Motor tractors, harvesting combines and heavy vehicles |
-do- |
|
5. Electrically operated vehicles including battery powered or fuel
cell powered vehicles |
8 Years |
VII.
|
Ships [NESD]
|
|
|
1. Ocean-going ships |
|
|
(i) | |
Bulk Carriers and liner vessels |
|
25 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 tanks |
|
25 Years |
|
|
20 Years |
|
(iv) | |
Liquified gas carriers |
|
30 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 vessels |
|
20 Years |
|
(viii) | |
Catamarans and other high speed passenger for ships or boats |
|
-do- |
|
|
25 Years |
|
|
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— |
|
|
|
13 Years |
|
|
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]
|
15 Years |
X.
|
Ropeway structures [NESD]
|
15 Years |
XI.
|
Office equipment [NESD]
|
5 Years |
XII.
|
Computers and data processing units [NESD]
|
|
|
(i) Servers and networks |
6 Years |
|
(ii) End user devices, such as, desktops, laptops, etc. |
3 Years |
XIII.
|
Laboratory equipment [NESD]
|
|
|
(i) General laboratory equipment |
10 Years |
|
(ii) Laboratory equipments used in educational institutions |
5 Years |
XIV.
|
Electrical Installations and Equipment [NESD]
|
10 years |
XV.
|
Hydraulic works, pipelines and sluices [NESD]
|
15 Years |