Audit

Audit Commissionerates have been created with an objective to improve the functional efficiency of audit in the field formations. An effective taxpayer audit plays a key role in improving compliance and augmenting tax revenues.
Taxation

The SEBI (Alterative Investment Funds) Regulations, 2012 ('AIF Regulations') vide Regulation No.4 issued in May 2012 aims at regulating all forms of private pool of funds in India.
Corporate Laws

All India Tax Advocates Forum president MK Gandhi said this notification will hurt the basic foundation of Delhi Trade. "It will disturb the distributive character of Delhi. The reversal of input tax credit will make goods costlier resulting in drop in trade," Gandhi said.

Utilities Deatils

TDS / TCS RATES FOR F.Y. 2013-14 & 2014-15

Section	Nature of Payment	Threshold Limit of Payment		FY (2014-15)
192	Income from Salary	Senior Citizen (60 Years)	Rs. 3,00,000	Average rate of Tax + edu. Cess Surcharge if Salary > 1 cr
		Super Senior Citizen (80 Years)	Rs. 5,00,000
		Others	Rs. 2,50,000
193	Interest on Securities	Rs. 5000		10%
194A	Interest from a Banking Company	Rs. 10,000 per annum		10%
194A	Interest other than from a Banking Co.	Rs. 5,000 per annum		10%
194B	Winning from Lotteries & Cross Word Puzzles	Rs. 10,000 per annum		30%
194BB	Winning from Horse Races	Rs. 5,000 per annum		30%
194C	Payment to Contractors; Sub-contractor; Advertising Contractors	Rs. 30,000 per contract (or)		Individual/HUF 1% Others 2%
194C		Rs. 75,000 per annum		Individual/HUF 1% Others 2%
194D	Insurance Commission	Rs.20,000 per annum		10%
194E	Non-resident Sportsman or Sports Association	-		20%
194EE	Out of depoist under NSS	Rs.2500		Individual or HUF 20% Other NA
194G	Commission on Sale of Lottery Tickets	Rs.1000		10%
194H	Commission/Brokerage	Rs. 5,000 per annum		10%
194-I	Rent on Plant / Machinery	Rs. 1,80,000 per annum		2%
194-I	Rent Other then Plant / Machinery	Rs. 1,80,000 per annum		10%
194-IA	Payment on transfer of Non agricultural immovable property (wef 01.06.13)	Rs. 50,00,000		1%
194J	Fees for Professional / Technical Services	Rs. 30,000 per annum		10%
194J(1)(ba)	Any remuneration or commission paid to director of the company (other than salary)			10%
194LA	Compulsory Acquisition of Immovable Property	Rs. 2,00,000		10%
194 IA	Compensation on transfer of certain immovable property other than agricultural land (w.e.f. 01 .06.2013)	Consideration is Rs. 50 lakh or more.		1%
194LD	Interest on certain bonds & Govt. securities (w.e.f. 01 .06.2013)	-		5%
TCS Rates
206C	Scrap	-		1%
206C	Tendu Leaves	-		5%
206C	Timber obtained under a forest lease or other mode	-		2.50%
206C	Any other forest produce not being a Timber or tendu leave	-		2.50%
206C	Alcoholic Liquor for Human Consumption	-		1%
206C	Packing lot, toll plaza, mining & quarrying	-		2%
206C	Purchase of Bullion/ Jewellery in cash	Rs. 2 Lacs per transaction (Bullion) Rs. 5 Lacs per transaction (Jewellery)		1%
206C	Purchase of coal lignite, Iron ore by a trader	-		1%

Notes

1. Surcharges & Education Cess

Type of Payment	Surcharge	Rate	Education Cess (3.00%)
Salary (Resident & Non-resident)	Upto 1cr	Nil	Yes
Salary (Resident & Non-resident)	> 1 Crore	10%	Yes
Other Payments to Residents	No	Nil	No
Other Payments to Non-Residents
Payment to Non-Residents (other than Cos)	Upto 1cr	Nil	Yes
Payment to Non-Residents (other than Cos)	> 1 Crore	10%	Yes
Payments to Foreign Co.	Upto 1cr	Nil	Yes
	> 1 Crore	2%
	> 10 Crores	5%

2. Nil rate will be applicable to transporter of goods if he provides his PAN to the deductor.
3. Nil Deduction entries of transporters also to be shown in Form 26Q.
4. TDS @ 20% where PAN not furnished.
5. Benefit of Marginal Relief from surcharge shall be available where income exceeds 1 cr.

Fees and Penalties

Section	Description	FY (2014-15)
234E	Fee for late filing of TCS/ TCS return	Rs 200 per day (not exceeding amount of tax)
271H(1)(a)	Penalty for Late filing of TCS/TCS return beyond 1 year	Minimum Penalty : Rs. 10,000 Maximum Penalty : Rs. 1 lac
271H(1)(b)	Penalty for providing incorrect information in TDS/TCS Return	Minimum Penalty : Rs. 10,000 Maximum Penalty : Rs. 1 lac

Other Important Changes
Section	Description	FY (2014-15)
197A	Eligible Age for Form 15H (Payment without TDS)	60 years.
201/206C	Interest on non-short deduction of tax where deductee deposits advance/ self assessment tax	Till date of filing of ITR by deductee wherein full tax has been deposited. CA certificate needed.
40(a)(ia)	Disallowance of payment made without TDS where deductee deposits advance / self assessment tax	Till date of filing of ITR by deductee wherein full tax has been deposited. CA certificate needed.
200A	Appeal, Rectification against Intimation of TDS Return	Yes

Interest on delay in deposit of tax after deduction

Stage of deduction	Rate per month or part of the month
From date when deductible till actual deduction	1%
From date of deduction till payment	1.5%

Click here to view TDS / TCS RATES FOR F.Y. 2011-12

Click here to view TDS / TCS RATES FOR F.Y. 2012-13

TDS Rates for Non-Residents u/s 195 of Income Tax Act, 1961

	Nature of Payment	Co.	Others
1.	Long Term Capital Gains u/s 115E	NA	10%
2.	Other Long Term Capital Gains (excluding u/s 10(33), 10(36) & 10 (38))	20%	20%
3.	Short Term Capital Gains u/s. 111A	15%	15%
4.	Investment income from Foreign Exchange Assets	NA	20%
5.	Interest payable on moneys borrowed or debt incurred in Foreign Currency	20%	20%
6.	Royalty & Fees for technical services u/s. 115A - Agreement 1st June, 1997 to 31st May, 2005 - Agreement on or after 1st June 2005	20% 25%	20% 25%
7.	Winnings from Lotteries, Crossword Puzzles and Horse Races	30%	30%
8.	Any Other Income	40%	30%

Notes :

Surcharge @ 2% is applicable only in case of Non-Domestic Companies where payments exceed Rs. 1 cr.
Education cess @ 3% is applicable in all cases.

Interest on delay in deposit of tax after deduction

Stage of deduction	Upto 30th June 2010 (Rate per month or part of the month)	From 1st July 2010 (Rate per month or part of the month)
From date when deductible till actual deduction	1%	1%
From date of deduction till payment	1%	1.5%

Rates of Income Tax

Assessment year : 2014 - 15
Previous year : 2013 - 14

Assessment year : 2015 - 16
Previous year : 2014 - 15

1. For resident women below the age of 60 years.

Upto Rs. 2,00,000	Nil
Rs. 2,00,001 to Rs. 5,00,000	10%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Upto Rs. 2,50,000	Nil
Rs. 2,50,001 to Rs. 5,00,000	10%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

2. For resident Senior Citizens. (Age above 60 Years)

Up to Rs 2,50,000	Nil
Rs. 2,50,001 to Rs. 5,00,000	10%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Up to Rs 3,00,000	Nil
Rs. 3,00,001 to Rs. 5,00,000	10%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

3. For resident Super Senior Citizens. (Age above 80 Years)

Up to Rs 5,00,000	Nil
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Up to Rs 5,00,000	Nil
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

4. Individuals, [other than those mentioned above, HUF, AOP/BOI (other than co-operative societies).

Upto Rs. 2,00,000	Nil
Rs. 2,00,001 to Rs. 5,00,000	10%
Rs. 5,00,001 to Rs 10,00,000	20%
Above Rs. 10,00,000	30%

Upto Rs. 2,50,000	Nil
Rs. 2,50,001 to Rs. 5,00,000	10%
Rs. 5,00,001 to Rs 10,00,000	20%
Above Rs. 10,00,000	30%

Note: Rebate u/s 87A is added from Finance Act 2013, in which resident individuals are allowed rebate (if their taxable income does not exceed Rs. 5 lakh) equal to 100% of income tax or Rs. 2000 whichever less.

Surcharge : 10% for Individual having taxable Income exceeding 1 Crore
Education Cess : 2% on income-tax plus surcharge.
Secondary and Higher Education cess : 1% on income-tax plus surcharge
Long-Term Capital Gains: 20% on income-tax plus surcharge.
Short-Term Capital Gains u/s 111A:15% on income-tax plus surcharge.

Firms

Income tax : 30%.
Surcharge :10%
Education Cess : 2% on income-tax plus surcharge
Secondary and Higher Education cess : 1% on income-tax plus surcharge

Companies

(A) Domestic Companies
Income tax : 30%
Surcharge: 5% if the taxable income exceeds Rs. 1 crore & 10% if the taxable income exceeds 10 crores
Education Cess: 2% on income-tax plus surcharge.
Secondary and Higher Education cess : 1% on income-tax plus surcharge

(B) Foreign Companies
Income tax :	40% (in general )
Surcharge :	2% if the taxable income exceeds Rs. 1 crore & 5% if the taxable income exceeds 10 crores
Education Cess :	2% on income-tax plus surcharge
Secondary and Higher Education cess :	1% on income-tax plus surcharge

(B) Foreign Companies
Income tax :	40% (in general )
Surcharge :	2% if the taxable income exceeds Rs. 1 crore & 5% if the taxable income exceeds 10 crores
Education Cess :	2% on income-tax plus surcharge
Secondary and Higher Education cess :	1% on income-tax plus surcharge

Cooperative Societies

Upto Rs. 10,000	10%
Rs. 10,001 to Rs. 20,000	20%
Rs. 20,001 to Above	30%

Upto Rs. 10,000	10%
Rs. 10,001 to Rs. 20,000	20%
Rs. 20,001 to Above	30%

Surcharge : 10%
Education Cess : 2% on income-tax.
Secondary And Higher EducationCess : 1% on income tax plus surcharge

Local Authorities

Income tax : 30%.
Surcharge :10%
Education Cess : 2% on income-tax plus surcharge.
Secondary and Higher Education cess : 1% on income-tax plus surcharge

Rates Of Income Tax (Assessment year : 2012 - 13, P.Y-2011-12)

COST INFLATION INDEX

Financial Year	Cost Inflation Index
1981-1982	100
1982-1983	109
1983-1984	116
1984-1985	125
1985-1986	133
1986-1987	140
1987-1988	150
1988-1989	161
1989-1990	172
1990-1991	182
1991-1992	199
1992-1993	223
1993-1994	244
1994-1995	259
1995-1996	281
1996-1997	305
1997-1998	331
1998-1999	351
1999-2000	389
2000-2001	406
2001-2002	426
2002-2003	447
2003-2004	463
2004-2005	480
2005-2006	497
2006-2007	519
2007-2008	551
2008-2009	582
2009-2010	632
2010-2011	711
2011-2012	785
2012-2013	852
2013-2014	939
2014-2015	1024

RATES OF INTEREST ON NSC (VIII ISSUE)

Year	01-03-2001 to 28-02-2002	01-03-2002 to 28-02-2003	01-03-2003 to 30-11-2011	01-12-2011 to 31-03-2012	01-04-2012 to 31-03-2013	01-04-2013 to 31-03-2014
1st Year	9.72	9.20	8.16	8.58	8.78	8.68
2nd Year	10.67	10.05	8.83	9.31	9.56	9.43
3rd Year	11.71	10.97	9.55	10.11	10.40	10.25
4th Year	12.85	11.98	10.33	10.98	11.31	11.14
5th Year	14.10	13.09	11.17	11.92	12.30	12.11
6th Year	15.47	14.29	12.08	N/A	N/A	N/A

RATES OF INTEREST ON NSC (IX ISSUE)

Year	01-12-2011 to 31-03-2012	01-04-2012 to 31-03-2013	01-04-2013 to 31-03-2014
1st Year	8.89	9.10	8.99
2nd Year	9.68	9.93	9.80
3rd Year	10.54	10.83	10.68
4th Year	11.48	11.81	11.64
5th Year	12.50	12.89	12.69
6th Year	13.61	14.06	13.83
7th Year	14.82	15.34	15.08
8th Year	16.13	16.74	16.43
9th Year	17.57	18.26	17.91
10th Year	19.13	19.92	19.52

GOLD & SILVER RATES
Year	Gold Rates in Rs./10 gram (Standard 24 carats)	Silver Rates in Rs./Kg.
31.03.2015	26580	37500
31.03.2014	28470	43070
31.03.2013	29610	54030
31.03.2012	28040	56290
31.03.2011	20775	56900
31.03.2010	16320	27255
31.03.2009	15105	22165
31.03.2008	12125	23625
31.03.2007	9395	19520
31.03.2006	8490	17405
31.03.2005	6180	10675
31.03.2004	6065	11770
31.03.2003	5310	7695
31.03.2002	5010	7875
31.03.2001	4190	7215
31.03.2000	4380	7900
31.03.1999	4235	7615
31.03.1998	4045	8560
31.03.1997	4725	7345
31.03.1996	5160	7346
31.03.1995	4680	6335
31.03.1994	4598	7124
31.03.1993	4140	5489
31.03.1992	4334	8040
31.03.1991	3466	6646
31.03.1990	3200	6463
31.03.1989	3140	6755
31.03.1988	3130	6066
31.03.1987	2570	4794
31.03.1986	2140	4015
31.03.1985	2130	3955
31.03.1984	1975	3570
31.03.1983	1800	3105
31.03.1982	1700	2720
31.03.1981	1670	2715

RATES OF DEPRECIATION UNDER THE INCOME TAX ACT

APPENDIX I
[See rule 5]
TABLE OF RATES AT WHICH DEPRECIATION IS ADMISSIBLE

Block of assets	Depreciation allowance as percentage of written down value
1	2
PART A TANGIBLE ASSETS

I. BUILDING [See Notes 1 to 4 below the Table ]

Buildings which are used mainly for residential purposes except hotels and boarding houses

Buildings other than those used mainly for residential purposes and not covered by sub-items (1) above and (3) below

Buildings acquired on or after the 1st day of September, 2002 for installing machinery and plant forming part of water supply project or water treatment system and which is put to use for the purpose of business of providing infrastructure facilities under clause (i) of subsection (4) of section 80-IA

100

Purely temporary erections such as wooden structures

100

II. FURNITURE AND FITTINGS

Furniture and fittings including electrical fittings [ See Note 5 below the Table ]

III. MACHINERY AND PLANT

Machinery and plant other than those covered by sub-items (2), (3) and (8) below

Motor cars, other than those used in a business of running them on hire, acquired or put to use on or after the 1st day of April, 1990

(i) Aeroplanes - Aeroengines

(ii) Motor buses, motor lorries and motor taxis used in a business of running them on hire

(iii) Commercial vehicle which is acquired by the assessee on or after the 1st day of October, 1998, but before the 1st day of April, 1999 and is put to use for any period before the 1st day of April, 1999 for the purposes of
business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section 32
[ See Note 6 below the Table]

(iv) New commercial vehicle which is acquired on or after the 1st day of October, 1998, but before the 1st day of April, 1999 in replacement of condemned vehicle of over 15 years of age and is put to use for any period
before the 1st day of April, 1999 for the purposes of business or profession in accordance with the third
proviso to clause (ii) of sub-section (1) of section 32 [ See Note 6 below the Table]

(v) New commercial vehicle which is acquired on or after the 1st day of April, 1999 but before the 1st day of April, 2000 in replacement of condemned vehicle of over 15 years of age and is put to use before the 1st day of April, 2000 for the purposes of business or profession in accordance with the second proviso to clause (ii) of
sub-section (1) of section 32 [ See Note 6 below the Table ]

(vi) New commercial vehicle which is acquired on or after the 1st day of April, 2001 but before the 1st day of April, 2002 and is put to use before the 1st day of April, 2002 for the purposes of business or profession [ See Note 6 below the Table ]

(vii) Moulds used in rubber and plastic goods factories

(viii) Air pollution control equipment, being -

Electrostatic precipitation systems
Felt-filter systems
Dust collector systems
Scrubber-counter current/venturi/packedbed/cyclonic scrubbers
Ash handling system and evacuation system

100

(ix) Water pollution control equipment, being -

(a) Mechanical screen systems
(b) Aerated detritus chambers (including air compressor)
(c) Mechanically skimmed oil and grease removal systems
(d) Chemical feed systems and flash mixing equipment
(e) Mechanical flocculators and mechanical reactors
(f) Diffused air/mechanically aerated activated sludge systems
(g) Aerated lagoon systems
(h) Biofilters
(i) Methane-recovery anaerobic digester systems
(j) Air floatation systems
(k) Air/steam stripping systems
(l) Urea Hydrolysis systems
(m) Marine outfall systems
(n) Centrifuge for dewatering sludge
(o) Rotating biological contractor or bio-disc
(p) Ion exchange resin column
(q) Activated carbon column

100

(x) (a) Solidwaste, control equipments being, - caustic/lime/chrome/ mineral/cryolite recovery system
(b) Solidwaste recycling and resource recovery systems

100

(xi) Machinery and plant, used in semi-conductor industry covering all integrated circuits (ICs) (excluding hybrid integrated circuits) ranging from small scale integration (SSI) to large scale integration/very large scale integration (LSI/VLSI) as also discrete semi-conductor devices such as diodes, transistors, thyristors, triacs, etc., other than those covered by entries (viii), (ix) and (x) of this sub-item and sub-item (8) below.

(xia) Life Saving medical equipment being-

(a) D.C.Defibrillators for internal use and pace makers.

(b) Haemodialysors.

(d) Cobalt therapy unit.

(e) Colour Doppler.

(f) Spect Gamma Camera.

(g) Vascular Angiography System including Digital subtraction Angiography.

(h) Ventilator used with anaesthesia apparatus.

(i) Magnetic Resonance Imaging System

(j) Surgical Laser.

(k) Ventilator other than those used with anaesthesia

(l) Gamma knife.

(m) Bone Marrow Transplant Equipment including silastic long standing intravenous catheters for chemotherapy.

(n) Fibreoptic endoscopes including Paediatric resectoscope/audit resectoscope Peritoneoscopes, Arthoscope, Microaryngoscope, Fibresoptic Flexible Nasal Pharyngo, Video Laryngo Bronchoscope, fibreoptic Flaxible Laryngo Bronchoscope, Video Laryngo Bronchoscope and Video Oescophago Gastroscope, Stroboscope, Fibreoptic Flexible oesophago Gastroscope.

(o) Laparoscope (single incision )

Containers made of glass or plastic used as re-fills

Computers including computer software [ See note 7 below the Table ]

Machinery and plant, used in weaving, processing and garment sector of textile industry, which is purchased under TUFS on or after the 1st day of April, 2001 but before the 1st day of April, 2004 and is put to use before the 1st day of April, 2004
[ See Note 8 below the Table ]

Machinery and plant, acquired and installed on or after the 1st day of September, 2002 in a water supply project or a water treatment system and which is put to use for the purpose of business of providing infrastructure facility under clause (i) of sub-section (4) of section 80-IA [ See Notes 4 and 9 below the Table]

100

(i) Wooden parts used in artificial silk manufacturing machinery

100

(ii) Cinematograph films - bulbs of studio lights

100

(iii) Match factories - Wooden match frames

100

(iv) Mines and quarries:

(a) Tubs, winding ropes, haulage ropes and sand stowing pipes
(b) Safety lamps

100

(v) Salt works - Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material

100

(vi) Flour mills - Rollers

(vii) Iron and steel industry - Rolling mill rolls

(viii) Sugar works - Rollers

(ix) Energy saving devices, being-

A. Specialised boilers and furnaces:

(a) Ignifluid/fluidized bed boilers

(b) Flameless furnaces and continuous pusher type furnaces

(c) Fluidized bed type heat treatment furnaces

(d) High efficiency boilers (thermal efficiency higher than75 per
cent in case of coal fired and 80 per cent in case of oil/gas
fired boilers)

B. Instrumentation and monitoring system for monitoring energy
flows:

(a) Automatic electrical load monitoring systems

(b) Digital heat loss meters

(c) Micro-processor based control systems

(d) Infra-red thermography

(e) Meters for measuring heat losses, furnace oil flow, steam flow, electric

energy and power factor meters

(f) Maximum demand indicator and clamp on power meters

(g) Exhaust gases analyser

(h) Fuel oil pump test bench

C. Waste heat recovery equipment:

(a) Economisers and feed water heaters

(b) Recuperators and air pre-heaters

(c) Heat pumps

(d) Thermal energy wheel for high and low temperature waste
heat recovery

D. Co-generation systems:

(a) Back pressure pass out, controlled extraction, extractioncum-
condensing turbines for co-generation along with pressure boilers

(b) Vapour absorption refrigeration systems

(c) Organic rankine cycle power systems

(d) Low inlet pressure small steam turbines

E. Electrical equipment:

(a) Shunt capacitors and synchronous condenser systems

(b) Automatic power cut off devices (relays) mounted on individual motors

(c) Automatic voltage controller

(d) Power factor controller for AC motors

(e) Solid state devices for controlling motor speeds

(f) Thermally energy-efficient stenters (which require 800 or less
kilocalories of heat to evaporate one kilogram of water)

(g) Series compensation equipment
(h) Flexible AC Transmission (FACT) devices - Thyristor controlled
series compensation equipment

(i) Time of Day (TOD) energy meters

(j) Equipment to establish transmission highways for National
Power Grid to facilitate transfer of surplus power of one
region to the deficient region

(k) Remote terminal units/intelligent electronic devices,
computer hardware/software, router/bridges, other required
equipment and associated communication systems for
supervisory control and data acquisition systems, energy
management systems and distribution management systems
for power transmission systems

(l) Special energy meters for Availability Based Tariff (ABT)

F. Burners:
(a) 0 to 10 per cent excess air burners
(b) Emulsion burners

(c) Burners using air with high pre-heat temperature (above 300°C)

G. Other equipment:

(a) Wet air oxidation equipment for recovery of chemicals and
heat

(b) Mechanical vapour recompressors

(c) Thin film evaporators

(d) Automatic micro-processor based load demand controllers

(e) Coal based producer gas plants

(f) Fluid drives and fluid couplings

(g) Turbo charges/super-charges

(h) Sealed radiation sources for radiation processing plants

(x) Gas cylinders including valves and regulators

(xi) Glass manufacturing concerns - Direct fire glass melting furnaces

(xii) Mineral oil concerns:

(a) Plant used in field operations (above ground) distribution -
Returnable packages

(b) Plant used in field operations (below ground), but not
including kerbside pumps including under ground tanks and
fittings used in field operations (distribution) by mineral oil
concerns

(xiii) Renewal energy devices being -

(a) Flat plate solar collectors

(b) Concentrating and pipe type solar collectors

(c) Solar cookers

(d) Solar water heaters and systems

(e) Air/gas/fluid heating systems

(f) Solar crop drivers and systems

(g) Solar refrigeration, cold storages and air conditioning systems

(h) Solar steels and desalination systems

(i) Solar power generating systems

(j) Solar pumps based on solar-thermal and solar-photovoltaic conversion

(k) Solar-photovoltaic modules and panels for water pumping
and other applications

(l) Wind mills and any specially designed devices which run on wind mills installed on or after 1st day of April, 2014

(m) Any special devices including electric generators and pumps running on wind energy installed on or after 1st day of April, 2014

(n) Biogas-plant and biogas-engines

(o) Electrically operated vehicles including battery powered or
fuel-cell powered vehicles

(p) Agricultural and municipal waste conversion devices producing energy

(q) Equipment for utilising ocean waste and thermal energy

(r) Machinery and plant used in the manufacture of any of the
above sub-items.

i) Books owned by assessees carrying on a profession -
(a) Books, being annual publications
(b) Books, other than those covered by entry (a) above

100

60

ii) Books owned by assessees carrying on business in running lending libraries

100

IV. SHIPS

Ocean-going ships including dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes and fishing vessels with wooden hull

Vessels ordinarily operating on inland waters, not covered by sub-item (3) below

Vessels ordinarily operating on inland waters being speed boats [ See Note 10 below the Table]

PART B
INTANGIBLE ASSETS

Know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature

Notified Date of Section: 01/04/2014

USEFUL LIVES TO COMPUTE DEPRECIATION

PART ‘A’

1. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value. The useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of production or similar units expected to be obtained from the asset by the entity

2. For the purpose of this Schedule, the term depreciation includes amortisation.

3. Without prejudice to the foregoing provisions of paragraph 1,—

1 & 1A[(i) The useful life of an asset shall not ordinarily be different from the useful life specified in Part C and the residual value of an asset shall not be more than five per cent. of the original cost of the asset:

Provided that where a company adopts a useful life different from what is specified in Part C or uses a residual value different from the limit specified above, the financial statements shall disclose such difference and provide justification in this behalf duly supported by technical advice";]

“(ii) For intangible assets, the provisions of the accounting standards applicable for the time being in force shall apply, except in case of intangible assets (Toll Roads) created under ‘Build, Operate and Transfer’, ‘Build, Own, Operate and Transfer’ or any other form of public private partnership route in case of road projects.
Amortisation in such cases may be done as follows:-

(a) Mode of amortisation

Amortisation Rate =	Amortisation Amount --------------------------------------	x 100
	Cost of Intangible Assets (A)

Amortisation Amount =

Cost of Intangible Assets (A) x	Actual Revenue for the year (B) ---------------------------------------------------------
	Projected Revenue from Intangible Asset (till the end of the concession period) (C)<

(b) Meaning of particulars are as follows :-

Cost of Intangible Assets (A) =	Cost incurred by the company in accordance with the accounting standards.
Actual Revenue for the year (B) =	Actual revenue (Toll Charges) received during the accounting year.
Projected Revenue from Intangible Asset (C) =	Total projected revenue from the Intangible Assets as provided to the project lender at the time of financial closure / agreement.

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.

c) Example:-

Cost of creation of Intangible Assets	:	Rs. 500/- Crores
Total period of Agreement	:	20 Years
Time used for creation of Intangible Assets	:	2 Years
Intangible Assets to be amortised in	:	18 Years

Assuming that the Total revenue to be generated out of Intangible Assets over the period would be Rs. 600 Crores, in the following manner:-

Year No.	Revenue ( In Rs. Crores)	Remarks
Year 1	5	Actual
Year 2	7.5	Estimate *
Year 3	10	Estimate *
Year 4	12.5	Estimate *
Year 5	17.5	Estimate *
Year 6	20	Estimate *
Year 7	23	Estimate *
Year 8	27	Estimate *
Year 9	31	Estimate *
Year 10	34	Estimate *
Year 11	38	Estimate *
Year 12	41	Estimate *
Year 13	46	Estimate *
Year 14	50	Estimate *
Year 15	53	Estimate *
Year 16	57	Estimate *
Year 17	60	Estimate *
Year 18	67.5	Estimate *
Total	600

‘*’ 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 x Rs. 500 Crores) which would be charged to profit and loss and 0.83% (i.e. Rs. 4.16 Crore/ Rs. 500 Crore x 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.]

PART ‘B’

4. The useful life or residual value of any specific asset, as notified for accounting purposes by a Regulatory Authority constituted under an Act of Parliament or by the Central Government shall be applied in calculating the depreciation to be provided for such asset irrespective of the requirements of this Schedule.

Depreciation Rate Chart
as per Part "C" of Schedule II of The Companies Act 2013

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	30 Year
(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
(i) Carpeted Roads-RCC	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
2[(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	13 Year
(b) Plant and Machinery used in glass manufacturing
1. Plant and Machinery except direct fire glass melting furnaces — Recuperative and regenerative glass melting 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 underground machinery and earth moving machinery used in open cast mining [NESD]	8 Years
(d) Plant and Machinery used in Telecommunications [NESD]
1. Towers	18 Years
2. Telecom transceivers, switching centres, transmission and other network equipment	13 Years
3. Telecom—Ducts, Cables and optical fibre	18 Years
4. Satellites	18 Years
(e) Plant and Machinery used in exploration, production and refining oil and gas [NESD]
1. Refineries	25 Years
2. Oil and gas assets (including wells), processing plant and facilities	25 Years
3. Petrochemical Plant	25 Years
4. Storage tanks and related equipment	25 Years
5. Pipelines	30 Years
6. Drilling Rig	30 Years
7. Field operations (above ground) Portable boilers, drilling tools, well-head tanks, etc.	8 Years
8. Loggers	8 Years
(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	40 Years
3. Nuclear Power Generation Plant	40 Years
4. Transmission lines, cables and other network assets	40 Years
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	30 Years
(g) Plant and Machinery used in manufacture of steel
1. Sinter Plant	20 Years
2. Blast Furnace	20 Years
3. Coke ovens	20 Years
4. Rolling mill in steel plant	20 Years
5. Basic oxygen Furnace Converter	25 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]	40 Years
3. Digester Section [NESD]	40 Years
4. Turbine [NESD]	40 Years
5. Equipments for Calcination [NESD]	40 Years
6. Copper Smelter [NESD]	40 Years
7. Roll Grinder	40 Years
8. Soaking Pit	30 Years
9. Annealing Furnace	30 Years
10. Rolling Mills	30 Years
11. Equipments for Scalping, Slitting , etc. [NESD]	30 Years
12. Surface Miner, Ripper Dozer, etc., used in mines	25 Years
13. Copper refining plant [NESD]	25 Years
(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. Reactors	20 Years
2. Distillation Columns	20 Years
3. Drying equipments/Centrifuges and Decanters	20 Years
4. Vessel/storage tanks	20 Years
(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	8 Years
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
(b) With other tanks	20 Years
(iv) Liquified gas carriers	30 Years
(v) Conventional large passenger vessels which are used for cruise purpose also	30 Years
(vi) Coastal service ships of all categories	30 Years
(vii) Offshore supply and support vessels	20 Years
(viii) Catamarans and other high speed passenger for ships or boats	20 Years
(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]	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 Yeras
(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

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.

4[4(a) Useful life specified in part C of the schedule is for whole of the asset and 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]

3[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 in significant 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 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, 5[may be recognized] 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.

ROC - FEES STRUCTURE

Fees For Filing Various Documents or For Registering any Fact Under Companies Act, 2013 (Except for Form No SH. 7)
Nominal Share Capital		Fees per document
1.	Less than Rs. 100000	Rs. 200
2.	Rs. 100000 less than Rs. 500000	Rs. 300
3.	Rs. 500000 less than Rs. 2500000	Rs. 400
4.	Rs. 2500000 or more less than Rs. 1 Crore	Rs. 500
5.	Rs. 1 Crore or more	Rs. 600
Form No. SH 7 For Increasing Authorised Capital
The difference between the fee payable on the proposed Authorized Capital and on the existing Capital at the rates prevailing on date of filing.
For enhancement of Authorized Capital or for registration of a new company, an additional stamp duty is payable @0.15% of the increased authorized capital or fresh authorized capital of new company as per Delhi Stamp Act.

Fee on Applications (including Appeal) made to Central Government
	Application made by	OPC & Small Companies	Other than OPC & Small Companies
(i)	A Company having an authorized Share Capital of :
	(a) Upto Rs 25,00,000	1000	2000
	(b) More than Rs 25,00,000 and upto Rs 50,00,000	2500	5000
	(c) More than Rs 50,00,000 and upto Rs 5 Crores	N/A	10000
	(d) More than Rs 5 Crores and upto Rs 10 Crores	N/A	15000
	(c) More Than Rs 10 Crores	N/A	20000
(ii)	A Company limited by guarantee but not having share capital	-	2000
(iii)	Section 8 Company	-	2000
(iv)	Foreign Company	-	5000
(v)	Application for Allotment of DIN U/S 153	-	500

Additional Fees For Late Filing of Document
Document	Period of Delay	Rate of Additional Fee
Form No. SH 7 (increase in Share Capital)	Up to 6 Months	Beyond 6 Months
Form No. SH 7 (increase in Share Capital)	2.5% pm on normal fee	3% pm on normal fee
Other Documents	i) Upto 15 days (Sec. 93, 139 & 157)	One time of normal filing fee
	ii) More than 15 days and upto 30 days	Two times of normal filing fee
	iii) More than 30 days and upto 60 days	Four times of normal filing fee
	iv) More than 60 days and upto 90 days	Six times of normal filing fee
	v) More than 90 days and upto 180 days	Ten times of normal filing fee
	vi) More than 180 days and upto 270 days	Twelve times of normal filing fee

Other Fee to be Paid
Inspection of File and Charges	Charges
File Inspection	Rs. 100
Charges Inspection	Rs. 100
Fees for Obtaining Certified Copy
Certificate of Incorporation	Rs. 100
Other Certified Copies	Rs. 25 per page

Filing fees for Incorporation of a Company having a Share Capital

Authorised Capital Rs.	Memorandum of Association Rs.	AOA, Form INC 7, Form INC 22 & Form DIR 12 * Rs.	Total Rs.
1,00,000.00	5,000.00	1,200.00	6,200.00
200,000.00	9,000.00	1,200.00	10,200.00
300,000.00	13,000.00	1,200.00	14,200.00
400,000.00	17,000.00	1,200.00	18,200.00
500,000.00	21,000.00	1,600.00	22,600.00
600,000.00	24,000.00	1,600.00	25,600.00
700,000.00	27,000.00	1,600.00	28,600.00
1,000,000.00	36,000.00	1,600.00	37,600.00
1,500,000.00	51,000.00	1,600.00	52,600.00
2,000,000.00	66,000.00	1,600.00	67,600.00
2,500,000.00	81,000.00	2,000.00	83,000.00
3,000,000.00	96,000.00	2,000.00	98,000.00
3,500,000.00	111,000.00	2,000.00	113,000.00
4,000,000.00	126,000.00	2,000.00	128,000.00
4,500,000.00	141,000.00	2,000.00	143,000.00
5,000,000.00	156,000.00	2,000.00	158,000.00
6,000,000.00	166,000.00	2,000.00	168,000.00
7,000,000.00	176,000.00	2,000.00	178,000.00
8,000,000.00	186,000.00	2,000.00	188,000.00
9,000,000.00	196,000.00	2,000.00	198,000.00
10,000,000.00	206,000.00	2,400.00	208,400.00
20,000,000.00	281,000.00	2,400.00	283,400.00
30,000,000.00	356,000.00	2,400.00	358,400.00
40,000,000.00	431,000.00	2,400.00	433,400.00
50,000,000.00	506,000.00	2,400.00	508,400.00
Note:-Filing fees prescribed in above table are according to Annexure pursuant to rule 12 of Companies(Registration of Offices Fees) Rules, 2014 . For eg for authorised share capital of Rs 1,00,000 fees for AOA & other forms is calculated as 300*4 = Rs. 1,200

Limited Liability Partnership Fees (Annexure A)

1. For registration of Limited Liability Partnership including conversion of a firm or a private company or an unlisted public company into Limited Liability Partnership:

Limited Liability Partnership whose contribution does not exceed Rs. 1 lakh Rs. 500/-
Limited Liability Partnership whose contribution exceeds Rs. 1 lakh but does not exceed Rs. 5 lakhs Rs. 2000/-
Limited Liability Partnership whose contribution exceeds Rs. 5 lakhs but does not exceed Rs. 10 lakhs Rs.4000/-
Limited Liability Partnership whose contribution exceeds Rs. 10 lakh Rs. 5000/-

2. The difference between the fees payable on the increased slab of contribution and the fees paid on the preceding slab of contribution shall be paid through Form.

3. For filing, registering or recording any document, form, statement, notice, Statement of Accounts and Solvency, annual return and an application alongwith the Statement for conversion of a firm or a private company or an unlisted public company into LLP by this Act or by these rules required or authorized to be filed, registered or recorded:

Limited Liability Partnership whose contribution does not exceed Rs. 1 lakh Rs. 50/-
Limited Liability Partnership whose contribution exceeds Rs. 1 lakh but does not exceed Rs. 5 lakhs Rs. 100/-
Limited Liability Partnership whose contribution exceeds Rs. 5 lakhs but does not exceed Rs. 10 lakhs Rs. 150/-
Limited Liability Partnership whose contribution exceeds Rs. 10 lakh Rs. 200/-

4. Fee for any application other than application for conversion of a firm or a private company or an unlisted public company into LLP shall be as under:-

An application for reservation of name u/s 16 is Rs. 200/-
An application for direction to change the name u/s 18 is 1[ Rs. 5000/-]
Application for reservation of name under Rule 18(3) is Rs. 10000/-
Application for renewal of name under rule 18(3) is Rs. 5000/-
Application for obtaining DPIN under rule 10(5) is Rs. 100/-

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Sunil Kumar Jain & Associates
We align our success to that of our clients. Our professional services are customized to each clients situation. We accept assignments only when we are confident in our ability to deliver unsurpassed value.

Sunil Kumar Jain & Associates

sunil_skj@hotmail.com sunilskj10@gmail.com

+91 33 22428964 / +91 33 40050066

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Notified Date of Section: 01/04/2014

USEFUL LIVES TO COMPUTE DEPRECIATION

Filing fees for Incorporation of a Company having a Share Capital

Limited Liability Partnership Fees (Annexure A)

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