background image
6.3. Depreciation and Amortization

Fixed assets are depreciated on the basis of straight line method over the useful life of the asset. Depreciation allowance is computed on the basis of the actual cost of the asset or cost of construction. If the cost is not available, then the book value is considered for depreciation.

The maximum applicable depreciation rates are as below:

The cost of repairs and maintenance exceeding 10% of the purchase price of the asset in a given year is considered as a capital expenditure and is depreciated over the remaining life of the asset.

Effective from 1 January 2019, an accelerated depreciation at three times the normal depreciation can be claimed in case of financial leasing assets for tax purposes.