MAT – A Brief Introduction

Minimum Alternative Tax is payable under the Income Tax Act. The concept of MAT was introduced to target those companies that make huge profits and pay the dividend to their shareholders but pay no/minimal tax under the normal provisions of the Income Tax Act, by taking advantage of the various deductions, and exemptions allowed under the Act. But with the introduction of MAT, the companies have to pay a fixed percentage of their profits as Minimum Alternate Tax. MAT is applicable to all companies, including foreign companies.

MAT is calculated under Section 115JB of the Income-tax Act. Every company should pay higher of the tax calculated under the following two provisions:

1. Tax liability as per the Normal provisions of income tax act(tax rate 30% plus 4% Edu cess plus surcharge (if applicable)

TAX LIABILITY AS PER THE NORMAL PROVISIONS OF THE INCOME TAX ACT WHOSE TURNOVER OR GROSS RECEIPTS WAS OF Rs.250Cr DURING THE FY 2016-17.(TAX RATE 25% PLUS 4%EDUCATION CESS PLUS SURCHARGE(IF APPLICABLE)

2. Tax liability as per the MAT provisions are given in Sec 115JB(18.5 % of Book Profits Plus 4 % education cess plus a surcharge if applicable). The tax rate is 15% with effect from AY 2020-21 (FY 2019-20).

How to calculate MAT?

MAT is equal to 18.5% (15% from AY 2020-21) of Book profits (Plus Surcharge and cess as applicable). Book profit means the net profit as shown in the profit & loss account for the year as increased and decreased by the following items:

Additions to the Net Profit (If debited to the Profit and Loss Account):

1. Income Tax paid or payable if any calculated as per normal provisions of income tax act.

2. Transfer made to any reserve

3.  Dividend proposed or paid

4. Provision for loss of subsidiary companies

5. Depreciation including depreciation on account of revaluation of assets

6. Amount/provision of deferred tax

7. Provision for unascertained liabilities e.g. provision for bad debts

8. Amount of expense relating to exempt income under sections 10,11,12 (except sec 10AA and 10(38)  This means income under section 10AA & long term capital gain exempt under section 10(38) are subject to MAT . Provision made for diminution in the value of any asset.

Deletions to the Net Profit (If credited to the Profit and Loss Account)

1. Amount withdrawn from any reserves or provisions

2. The amount of income to which any of the provisions of section 10, 11 & 12 except 10AA & 10(38) applies.

3. Amount withdrawn from revaluation reserve and credited to profit & loss account to the extent of depreciation on account of revaluation of asset.

4. Amount of loss brought forward or unabsorbed depreciation, whichever is less as per the books of account. However, the loss shall not include the depreciation. (if loss brought forward or unabsorbed depreciation is nil then nothing shall be deducted.)

5. Amount of Deferred Tax, is any such amount is credited in the profit & loss account

6. Amount of depreciation debited to the Profit and Loss Account (excluding the depreciation on revaluation of Assets).

What is MAT Credit?

As discussed in earlier part, a company has to pay higher of normal tax liability or liability as per MAT provisions. If in any year the company pays liability as per MAT, then it is entitled to claim credit of MAT paid over and above the normal tax liability in the subsequent year(s).The provisions relating to carry forward and adjustment of MAT credit are given in Section 115JAA.

(However, no interest shall be paid on this Tax credit by the Department.)

Such tax credit shall be carried forward for 15 Assessment Years immediately succeeding the assessment year in which such credit has become allowable. This is with effect from AY 2018-19 prior to which MAT could be carried forward only for a period of 10 AYs. For instance, if the excess tax is paid is in FY 2016-17, then the credit of such tax can be carried forward from in FY 2017-18.

MAT credit shall be allowed to be set off in a year when the tax becomes payable on the total income in accordance with the normal provisions of the Act. Set off shall be allowed to the extent of difference between the tax on the total income under normal provision and tax which would have been payable as per MAT under section 115JB.

1. Introduction to CARO 2020

CARO 2020 is a new format for issue of audit reports in case of statutory audits of companies under Companies Act, 2013. CARO 2020 has included additional reporting requirements after consultations with the National Financial Reporting Authority (NFRA). NFRA is an independent regulatory body for regulating the audit and accounting profession in India. The aim of CARO 2020 is to enhance the overall quality of reporting by the company auditors.

2. Applicability of CARO 2020

CARO 2020 is applicable for all statutory audits commencing on or after 1 April 2020 corresponding to the financial year 2019-20. The order is applicable to all companies which were covered by CARO 2016. Accordingly, the order applies to all the companies except the following companies specifically excluded from its purview:

• One person company
• Small companies (Companies with paid up capital less than/equal to Rs 50 lakh and with a last reported turnover which is less than/equal to Rs 2 crore)
• Banking companies
• Companies registered for charitable purposes
• Insurance companies
• The following private companies are also exempt from the requirements of CARO, 2020:
  – Whose gross receipts or revenue (including revenue from discontinuing operations) is less than or equal to Rs 10 crore in the financial year
  – Whose paid up share capital plus reserves is less than or equal to Rs 1 crore as on the balance sheet date (i.e. usually at the end of the FY)
  – Not a holding or subsidiary of a Public company
  – Whose borrowings is less than or equal to Rs 1 crore at any time during the FY

3. Reporting Requirements Under CARO 2020

The auditor’s report (CARO 2020) shall include a statement on the following matters, namely:

1. Details of tangible and intangible assets
2. Details of inventory and working capital
3. Details of investments, any guarantee or security or advances or loans given
4. Compliance in respect of a loan to directors
5. Compliance in respect of deposits accepted
6. Maintenance of costing records
7. Deposit of statutory liabilities
8. Unrecorded income
9. Default in repayment of borrowings
10. Funds raised and utilisation
11. Fraud and whistle-blower complaints
12. Compliance by a Nidhi
13. Compliance on transactions with related parties
14. Internal audit system
15. Non-cash dealings with directors
16. Registration under section 45-IA of RBI Act, 1934
17. Cash losses
18. Resignation of statutory auditors
19. Material uncertainty on meeting liabilities
20. Transfer to fund specified under Schedule VII of Companies Act, 2013
21. Qualifications or adverse auditor remarks in other group companies

In a case where the auditor’s answer to any of the requirements mentioned above is unfavourable or negative, then the auditor’s report shall also state the basis for such unfavourable or qualified answer.

Also, in a case where the auditor is unable to express any opinion on any specified matter, the report shall indicate such fact along with the reasons as to why it is not possible for the auditor to give an opinion on the same.

4. Detailed Reporting Under Each Clause

1. Details of tangible and intangible assets

• Whether the records maintained by the company display the complete particulars on the details, quantity and situation of tangible and intangible assets.
• Whether the management has carried out physical verification of the assets at different intervals reasonable with the size of the company.
• Whether the material discrepancies, if any noticed on physical verification have been accounted for in the books of accounts.
• Whether the title deeds pertaining to the immovable properties (except properties which are leased by the company with duly executed lease agreements in the company’s favour) disclosed in the financial statements are held in the name of the company.
• If the title deeds are not held in the name of the company, the below details should be provided:

  Description  of a property	Gross carrying value	Held in the name of	Whether promoter, director or their relative or employee	Period held: indicate a range, where appropriate	Reason for not being held in the name of company*
  					*also indicate if in dispute

• Whether a revaluation has been done by the company of its property, plant and equipment (including the right of use assets) or intangible assets or both during the year and, if so, whether the revaluation is based on the valuation by a Registered Valuer.
• In case of a change in values upon revaluation, specify the amount of change, if the change is 10% or more in the aggregate of the net carrying value of each class of property, plant and equipment or intangible assets.
• Whether any proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. If yes, whether the company has appropriately disclosed the details in its financial statements.

2. Details of inventory and working capital

• Whether the management has carried out physical verification of inventory at reasonable intervals.
• If any discrepancies of 10% or more in the aggregate for each class of inventory were noticed and if so, whether they have been properly dealt with in the books of accounts.
• Has the company, during any point of time of the year, sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets.
• Are the quarterly returns or statements filed by the company with financial institutions or banks in agreement with the books of account of the Company. In case of non-agreement, to provide details of such non-agreement.

3. Details of investments, any guarantee or security or advances or loans given

• If the company has during the year made any investments in, given any guarantee or security or granted any loans or advances which are characterised as loans, unsecured or secured, to LLPs, firms or companies or any other person.
• If the company has provided advances or provided loans which are characterised as loans, or given guarantee, or given security to any other entity (other than a company carrying on a business of providing loans), the below information should be furnished:
  – The total amount given during the year, and the balances due as at the balance sheet date with respect to such loans or advances and guarantees or security to subsidiaries, joint ventures and associates.
  – The total amount during the year, and the balance due on the balance sheet date of such loans or advances and guarantees or security to persons other than associates, subsidiaries and joint ventures.
• In the case of investments made, guarantee or security provided, loans or advances granted (as mentioned above), the report should indicate:
  – Whether the investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and advances in the nature of loans and guarantees provided are not prejudicial to the company’s interest.
  – In respect of loans and advances in the nature of loans, whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular.
  – If the amount is overdue, state the total amount overdue for more than ninety days, and whether reasonable steps have been taken by the company for recovery of the principal and interest.
  – In case any loan or advance in the nature of a loan is given which was due for repayment during the year and has been renewed or extended or fresh loans granted to settle the overdue of existing loans given to the same parties. If yes, specify the total amount of such dues renewed or extended or settled by fresh loans and the percentage (proportion) of the total to the total loans or advances granted during the year (other than companies whose principal business is to grant loans).
  – In case the company has given any loans or advances in the nature of loans either repayable on demand or without specification of any terms or period of repayment. If so, to specify the total amount, percentage thereof to the total loans granted, the total amount of loans granted to promoters, related parties as defined section 2(76) of the Companies Act, 2013.

4. Compliance in respect of a loan to directors

If the company has given any loans to directors or any other person in whom the director is interested, or made any investments, whether the company has made compliance with the provisions governing such loans, investments and guarantees.

5. Compliance in respect of deposits accepted

In case the company has accepted deposits or deemed deposits, whether the company has followed the directives of the RBI as under:

– Compliance with the provisions prescribed for accepting deposits under section 73 to 76 of the Companies Act, 2013.

– The nature of contraventions, if the above provisions are not followed.

– Compliance with any order passed by any court or tribunal.

– Reporting of any non-compliance with the provisions of Companies Act, 2013.

6. Maintenance of costing records

In case the company is required to maintain cost records, whether the records have been maintained during the year and non-compliance if any.

7. Deposit of statutory liabilities

Whether the company has:

– Regularly deposited statutory dues.

– Are any statutory dues pending for a period more than 6 months as on the balance sheet date.

– In case of any disputed statutory dues, the amount of such dues, the forum before whom the dues are litigated.

8. Unrecorded income

– Whether any transactions which are not recorded in the accounts have been disclosed or surrendered before the tax authorities as income during the year. The details of such income tax assessments should be disclosed.

– Whether such undisclosed income has been recorded in the accounts during the year.

9. Default in repayment of borrowings

In case the company has made any default in the repayment of loans to banks, government, debenture-holders, etc. then the amount and period of default.

Description of borrowing includes debt securities	Name of lender*	Amount unpaid on the due date	Whether interest or principal	Number of days of delay or unpaid	Auditor’s remarks
	*details, lender-wise should be provided in case of defaults to financial institutions, banks, or Government

• Has the company been declared a wilful defaulter by any bank or financial institution or any other lender.
• Have term loans been used for the object for which they were obtained; in case they have not been, the loan funds diverted and disclosure of the end use of such loans.
• Has the company used funds raised for a short term basis for long term purposes. The nature and the amount of such funds.
• Has the company raised any money from any person or entity for the account of or to pay the obligations of its associates, subsidiaries or joint ventures. The details of the money raised with the description of the transactions and the amounts in each case.
• Has the company raised any loans during the year by pledging securities held in their subsidiaries, joint ventures or associate companies. The details of such loans and also the default in the repayment of the loans.

10. Funds raised and utilisation

– If the company has raised any funds from a public offer (equity or debt capital), details of the funds applied for the purposes. Also, the details of default or delays and rectification measures taken.

– Has the company made any private placement or preferential allotment of shares or convertible debentures (fully, partially or optionally convertible) during the year, whether the same is in accordance with section 42 and section 62 of the Companies Act, 2013.

– Whether the funds raised, have been used for the purposes they were raised and the non-compliance, if any.

11. Fraud and whistle-blower complaints

– Has there been any fraud by the company or any fraud done on the company. If any such fraud has been noticed or reported any time of the year. If yes, nature and amount involved have to be reported.

– Whether the auditors of the company have filed a report in Form ADT-4 with the Central Government as prescribed under the Companies (Audit and Auditors) Rules, 2014.

– In case of receipt of whistle-blower complaints, whether the complaints have been considered by the auditor.

12. Compliance by a Nidhi

Compliance with provisions applicable to a Nidhi company:

– Maintaining of net owned funds to deposit ratio of 1:20 for meeting liabilities.

– Maintaining 10% term deposits (which are unencumbered) for meeting liabilities.

– Details of any default in payment of interest on deposits or repayment of for any period.

13. Compliance on transactions with related parties

Whether the company has complied with the provisions of section 188 of the Companies Act, 2013 in respect of transactions with related parties. Also, whether appropriate disclosures are made in the financial statements.

14. Internal audit system

– Does the company have an internal audit system in accordance with its size and business activities.

– Have the reports of the internal auditors been considered by the statutory auditor.

15. Non-cash transactions

In case the company has undertaken non-cash transactions with their directors or other persons connected to the directors, whether the restrictions imposed are complied with.

16. Registration under Section 45-IA of RBI Act, 1934

• Is the company required to be registered under the RBI Act and whether the company has obtained registration.
• Whether the company has carried on any Non-Banking Financial or Housing Finance activities (NBFC or HFC) without having a valid registration certificate from RBI.
• Is the company a Core Investment Company (CIC) under the RBI regulations and does it continue to fulfil the criteria of a CIC. In case the company is an exempted or unregistered CIC, does the company continue to fulfil the criteria for exemption.
• Does the group to which the company belongs have more than one CIC as part of it, then indicate the number of CICs which are in the group.

17. Cash losses

Has the company incurred any cash losses in the financial year and the immediately preceding financial year, the amount of cash losses incurred.

18. Resignation of statutory auditors

Whether during the year, has there been any resignation of statutory auditors, if yes, has the auditor considered the objections, issues or concerns raised by the outgoing auditors.

19. Material uncertainty

Existence of any material uncertainty on the date of the audit report on an evaluation of:

– The ageing report, financial ratios and expected dates of realisation of financial assets and payment of financial liabilities, any other information accompanying the financial statements, the auditor’s knowledge of the Board of Directors and management plans.

– Opinion whether the company can meet its the liabilities which exist as at the balance sheet date when such liabilities are due in the future.

20. Transfer to fund specified under Schedule VII of Companies Act, 2013

– With respect to obligations under Corporate Social Responsibility, whether the company has transferred the unspent amount to a Fund specified in Schedule VII to the Companies Act within a period of 6 months from the expiry of the financial year.

– Whether any amount which remains unspent has been transferred to a special account in accordance with provisions of section 135 of the Companies Act, 2013.

21. Qualifications or adverse auditor remarks in other group companies

In case there have been any qualifications or adverse remarks in the audit reports issued by the respective auditors in case of companies included in the consolidated financial statements, to indicate the details of the companies and the paragraph numbers of the respective CARO reports containing the qualifications or adverse remarks.

All the above-stated clauses are mandatory to be reported on. Also, the disclosures are to be given appropriately.

• Depreciation as per companies act 2013 for  Financial year 2014-15 and thereafter. These provisions are applicable from 01.04.2014 vide notification dated 27.03.2014 Depreciation is calculated by considering useful life of asset, cost and residual value.
• Any method WDV or SLM can be used.
• Schedule – II contains a list of useful life according to class of assets and the residual value shall not be more than five percent of the original cost of asset.
  However companies are free to adopt a useful life different from what specified in Schedule II and residual value more than 5%. The financial statements shall disclose such difference and provide justification in this behalf duly supported by technical advice.
• If there is any addition to the asset or asset is sold, discarded, demolished or destroyed then the calculation is made according to the date of such event. In other words, if any asset is purchased or sold then the calculation will be made according to the date of purchase or sold i.e datewise calculation is made.
• Depreciation method used is to be shown in accounts
• Useful life of assets is to be disclosed only when it is taken different from Schedule – II
• For assets in which NESD (No Exta Shift Depreciation) is mentioned in Schedule – II, the depreciation remains same irrespective of the no. of work shifts.
• For other assets, if the asset is used for double shifts during any time of the year then the depreciation shall be increased by 50% for that period. Similarly if asset is used for triple shifts then depreciation shall be increased by 100% for that period.
• Each Part of an item of an asset with a cost significant in relation to the total cost of the item shall be depreciated separately. Where cost of the part 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 should be determined separately.
  As per the amendment dated August 29, 2014 notified by the MCA, the said requirement shall be voluntary in respect for the financial year commencing on or after the April 1, 2104 and mandatory for financial statements in respect of financial years commencing on or after April 1, 2015.
  Component accounting is required to be done for the entire block of assets as at 1 April 2014 if a company opts to follow it voluntarily and as at 1 April, 2015 mandatorily. It cannot be restricted to only new assets acquired after 1 April 2014 or 1 April, 2015 as the case may be. If residual value is taken as 5% of cost of asset and life as per schedule – II then the depreciation rates on SLM and WDV basis are given in following link.

Transitional Provision

For assets existing on 01.04.2014 date of purchase is considered and the balance sheet value has to be depreciated over remaining useful life of assets.
If the remaining useful life of asset is NIL then the amount over and above residual value may be recognized in the opening balance of retained earnings or may be charged off to Profit and Loss account.

if a company uses Written Down Value (WDV) method of depreciation, it will need to calculate a new rate for depreciation to depreciate the asset over their remaining useful life using the formula for calculation of rate for depreciation as per WDV method which is reproduced below –

R= {1 – (s/c)^1/n } x 100

Where  R = Rate of Depreciation (in %)
n = Remaining useful life of the asset (in years)
s = Scrap value at the end of useful life of the asset
c= Cost of the asset/Written down value of the asset

It may be noted that upon transition to Schedule II, the company may have different rates of depreciation for individual assets within the same class in case of existing assets as there will be a different remaining useful life for each asset.

Depreciation rates as per Companies Act

Depreciation as per new companies act is allowed on the basis of useful life of assets and residual value. Depreciation rates are not given under the new companies act.
A table is given below of depreciation rates applicable if the asset is purchased on or after 01^st April, 2014 and useful life is considered as given in companies act,2013 and residual value as 5%. For all other cases calculate depreciation rate using our depreciation calculator.

NESD stands for No Extra Shift Depreciation.

Nature of Assets	Useful Life	Rate [SLM]	Rate [WDV]
(I) Buildings [NESD]
(a) Building (other than factory buildings) RCC Frame Structure	60	1.58%	4.87%
(b) Building (other than factory buildings) other than RCC Frame Structure	30	3.17%	9.50%
(c) Factory buildings	30	3.17%	9.50%
(d) Fences, wells, tube wells	5	19.00%	45.07%
(e) Other (including temporary structure, etc.)	3	31.67%	63.16%
(II) Bridges, culverts, bunkers, etc. [NESD]	30	3.17%	9.50%
(III) Roads [NESD]
(a) Carpeted Roads
(i) Carpeted Roads – RCC	10	9.50%	25.89%
(ii) Carpeted Roads – other than RCC	5	19.00%	45.07%
(b) Non-carpeted roads	3	31.67%	63.16%
(IV) Plant and Machinery
(a) General rate applicable to Plant and Machinery not covered under Special Plant and Machinery
(i) Plant and Machinery other than continuous process plant not covered under specific	15	6.33%	18.10%
(ii) Continuous process plant for which no special rate has been prescribed under (ii) below	8	11.88%	31.23%
(b) Special Plant and Machinery
(i) 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	13	7.31%	20.58%
2 Projecting equipment for exhibition of films	13	7.31%	20.58%
(ii) Plant and Machinery used in glass
1 Plant and Machinery except direct fire glass melting furnaces – Recuperative and regenerative glass melting furnaces	13	7.31%	20.58%
2 Plant and Machinery except direct fire glass melting furnaces – Moulds [NESD]	8	11.88%	31.23%
3 Float Glass Melting Furnaces [NESD]	10	9.50%	25.89%
(iii) Plant and Machinery used in mines and quarries Portable underground machinery and earth moving machinery used in open cast mining	8	11.88%	31.23%
(iv) Plant and Machinery used in Telecommunications [NESD]
1 Towers	18	5.28%	15.33%
2 Telecom transceivers, switching centres, transmission and other network equipment	13	7.31%	20.58%
3 Telecom – Ducts, Cables and optical fibre	18	5.28%	15.33%
4 Satellites	18	5.28%	15.33%
(v) Plant and Machinery used in exploration, production and refining oil and gas [NESD]
1 Refineries	25	3.80%	11.29%
2 Oil and gas assets (including wells), processing plant and facilities	25	3.80%	11.29%
3 Petrochemical Plant	25	3.80%	11.29%
4 Storage tanks and related equipment	25	3.80%	11.29%
5 Pipelines	30	3.17%	9.50%
6 Drilling Rig	30	3.17%	9.50%
7 Field operations (above ground) Portable boilers, drilling tools, well-head tanks, etc.	8	11.88%	31.23%
8 Loggers	8	11.88%	31.23%
(vi) Plant and Machinery used in generation, transmission and distribution of power [NESD]
1 Thermal / Gas / Combined Cycle Power Generation Plant	40	2.38%	7.22%
2 Hydro Power Generation Plant	40	2.38%	7.22%
3 Nuclear Power Generation Plant	40	2.38%	7.22%
4 Transmission lines, cables and other network assets	40	2.38%	7.22%
5 Wind Power Generation Plant	22	4.32%	12.73%
6 Electric Distribution Plant	35	2.71%	8.20%
7 Gas Storage and Distribution Plant	30	3.17%	9.50%
8 Water Distribution Plant including pipelines	30	3.17%	9.50%
(vii) Plant and Machinery used in manufacture of
1 Sinter Plant	20	4.75%	13.91%
2 Blast Furnace	20	4.75%	13.91%
3 Coke Ovens	20	4.75%	13.91%
4 Rolling mill in steel plant	20	4.75%	13.91%
5 Basic Oxygen Furnace Converter	25	3.80%	11.29%
(viii) Plant and Machinery used in manufacture of non ferrous metals
1 Metal pot line [NESD]	40	2.38%	7.22%
2 Bauxite crushing and grinding section	40	2.38%	7.22%
3 Digester Section [NESD]	40	2.38%	7.22%
4 Turbine [NESD]	40	2.38%	7.22%
5 Equipments for Calcinations [NESD]	40	2.38%	7.22%
6 Copper Smelter [NESD]	40	2.38%	7.22%
7 Roll Grinder	40	2.38%	7.22%
8 Soaking Pit	30	3.17%	9.50%
9 Annealing Furnace	30	3.17%	9.50%
10 Rolling Mills	30	3.17%	9.50%
11 Equipments for Scalping, Slitting, etc. [NSED]	30	3.17%	9.50%
12 Surface Miner, Ripper Dozer, etc. used in mines	25	3.80%	11.29%
13 Copper refining plant [NSED]	25	3.80%	11.29%
(ix) 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	7.31%	20.58%
2 Other Equipments	15	6.33%	18.10%
(x) Plant and Machinery used in manufacture of pharmaceuticals and chemicals [NESD]
1 Reactors	20	4.75%	13.91%
2 Distillation Columns	20	4.75%	13.91%
3 Drying equipments / Centrifuges and Decanters	20	4.75%	13.91%
4 Vessel / Storage tanks	20	4.75%	13.91%
(xi) Plant and Machinery used in civil construction
1 Concreting, Crushing, Piling Equipments and Road Making Equipments	12	7.92%	22.09%
2 Heavy Lift Equipments –
– Cranes with capacity more than 100 tons	20	4.75%	13.91%
– Cranes with capacity less than 100 tons	15	6.33%	18.10%
3 Transmission line, Tunnelling Equipments [NESD]	10	9.50%	25.89%
4 Earth-moving equipments	9	10.56%	28.31%
5 Others including Material Handling / Pipeline / Welding Equipments [NESD]	12	7.92%	22.09%
(xii) Plant and Machinery used in salt works [NESD]	15	6.33%	18.10%
(V) Furniture and fittings [NESD]
(a) General furniture and fittings	10	9.50%	25.89%
(b) Furniture and fittings used in hotels, restaurants and boarding houses, schools, colleges and other education institutions, libraries, welfare centres, meeting halls, cinema houses, theatres and circuses and furniture and fittings let out on hire for used on occasion of marriages and similar functions	8	11.88%	31.23%
(VI) Motor Vehicles [NESD]
(a) Motor cycles, scooters and other mopeds	10	9.50%	25.89%
(b) Motor buses, motor lorries, motor cars and motor taxies used in a business of running them on hire	6	15.83%	39.30%
(c) Motor buses, motor lorries, motor cars and motor taxies other than those used in a business of running them on	8	11.88%	31.23%
(d) Motor tractors, harvesting combines and heavy vehicles	8	11.88%	31.23%
(e) Electrically operated vehicles	8	11.88%	31.23%
(VII) Ships [NESD]
(a) Ocean-going ships
(i) Bulk Carriers and liner vessels	25	3.80%	11.29%
(ii) Crude tankers, product carriers and easy chemical carriers with or without conventional	20	4.75%	13.91%
(iii) Chemicals and Acid Carriers
1 With Stainless steel tanks	25	3.80%	11.29%
2 With other tanks	20	4.75%	13.91%
(iv) Liquefied gas carriers	30	3.17%	9.50%
(v) Conventional large passenger vessels which are used for cruise purpose also	30	3.17%	9.50%
(vi) Coastal service ships of all categories	30	3.17%	9.50%
(vii) Offshore supply and support vessels	20	4.75%	13.91%
(viii) Catamarans and other high speed passenger for ships or boats	20	4.75%	13.91%
(ix) Drill ships	25	3.80%	11.29%
(x) Hovercrafts	15	6.33%	18.10%
(xi) Fishing vessels with wooden hull	10	9.50%	25.89%
(xii) Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging	14	6.79%	19.26%
(b) Vessels ordinarily operating on inland waters
(i) Speed boats	13	7.31%	20.58%
(ii) Other vessels	28	3.39%	10.15%
(VIII) Aircrafts or Helicopters [NESD]	20	4.75%	13.91%
(IX) Railway siding, locomotives, rolling stocks, tramways and railway used by concerns, excluding railway	15	6.33%	18.10%
(X) Ropeway structures [NESD]	15	6.33%	18.10%
(XI) Office equipments [NESD]	5	19.00%	45.07%
(XII) Computers and data processing units [NESD]
(a) Servers and networks	6	15.83%	39.30%
(b) End user devices, such as, desktops, laptops, etc.	3	31.67%	63.16%
(XIII) Laboratory equipment [NESD]
(a) General laboratory equipment	10	9.50%	25.89%
(b) Laboratory equipments used in education institutions	5	19.00%	45.07%
(XIV) Electrical Installations and Equipment [NESD]	10	9.50%	25.89%
(XV) Hydraulic woks, pipelines and sluices [NESD]	15	6.33%	18.10%