MCA Notification - Amendment to Schedule II

Notification, File Number 17/60/2012-CL-V

Amendment to Schedule II (Useful lives to compute Depreciation) of the Companies Act 2013

G.S.R. ___(E).- In exercise of the powers conferred by sub-section (2) of section 123 read with sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following alterations to Schedule II to the said Act, namely:-

1. In Schedule II,

(1) in Part ‘A’, in para 3, for sub-paragraphs (i) to (iii), the following sub-paragraphs shall be substituted, namely:-

“(i) The useful life of an asset shall not be longer than 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 uses a useful life or residual value of the asset which is different from the above limits, justification for the difference shall be disclosed in its financial statement.

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Source: Ministry of Corporate Affairs.