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6.3. Depreciation and Amortization

Depreciation is allowed on capital assets (except goodwill and trademarks) on the basis of diminishing-balance method at following prescribed rates:

Buildings, roads, etc. 2%
Plant and machinery and generators 10%
Furniture and fittings 10%
Air conditioning units 12.5%
Motor Vehicles 20%
Computers and computer software 33.33%

Initial allowances are applicable on industrial buildings and capital expenditures incurred on plant and machinery by companies engaged in trade or undertaking. Additionally, an annual allowance of 2% is granted on all buildings.

Start-up expenses like costs of incorporation and other initial start-up costs, may be written off in five years using straight-line method.