Amendment status not verified — confirm the current text below against the official source.
For the purposes of section 5 (1), „net annual profit‟ in respect of any account year earlier than that referred to in paragraph I, shall mean and shall be deemed to mean the excess of income over expenditure, calculated in the manner laid down in the bulk supply agreement entered into by the licensee with the Government, or if there is no such agreement, in the prescribed manner, less the following sums:— 34 [Act No. XV of 1954] (i) the appropriations to the consumers‟ fund in accordance with the terms of that agreement or such other sum as was accepted by the Government in lieu of such appropriations; and (ii) the taxes paid or payable, in respect of such appropriations or sum, as taxes on income and profits. Part B—Applicable to a licensee being a local authority. For the purpose of section 5 (1), „„net annual profit” in respect of any account year of a licensee being a local authority shall be— (i) if the licensee has entered into a bulk supply agreement with the Government, or the licence granted to the local authority contains any provision for the distribution of profits, the amount that should be appropriated to the general funds of the local authority out of the profits on account of the undertaking in the manner laid down in such agreement or licence; and (ii) if there is no such agreement or provision in the licence for the distribution of profits, the amount actually appropriated to the general funds of the local authority as profits on account of the undertaking in accordance with the annual accounts. [Act No. XV of 1954] 35 SCHEDULE II. [See section 5 (3)]. For the purposes of payment of compensation under section 5 (3), the depreciation shall be calculated at annual rates arrived at by dividing ninety per cent of the book value of each asset by the number of years of life of the asset as specified in the table below. For the account year in which an asset was brought into beneficial use, the depreciation shall be calculated at half the annual rate and for the period after the last account year to the date of taking over, the depreciation shall be calculated pro rata. Description of asset. (1) Number of years or period. (2) A. Land owned under full title … Infinite. B. Land held under lease- (a) for investment in the land … The period of the lease or the period remaining unexpired on the assignment of the lease. (b) for cost of clearing the site … The period of the lease remaining unexpired at the date of clearing the site. 36 [Act No. XV of 1954] Description of asset. (1) Number of years or period. (2) C. Assets purchased new— (a) Plant and Machinery in generating stations, including plant foundations— (i) Hydro-electric … … … Thirty-five. (ii) Steam-electric … … … Twenty-five. (iii) Diesel-electric … … … Fifteen. (b) Cooling towers and circulating water systems. … … Thirty. (c) Hydraulic works forming part of a hydro-electric system including— (i) dams‟ spillways, weirs, canals, reinforced concrete flumes and syphons. … … One hundred. (ii) reinforced concrete pipe-lines and surge tanks, steel pipe- lines, sluice gates, steel surge tanks, hydraulic control valves, and other hydraulic works. … … Forty. [Act No. XV of 1954] 37 Description of asset. (1) Number of years or period. (2) (d) Buildings and Civil Engineering works of a permanent character, not mentioned above— (i) offices and show rooms … … Fifty. (ii) containing thermo- electric generating plant. … … Thirty. (iii) containing hydro- electric generating plant. … … Thirty-five. (iv) temporary erections such as wooden structures. ... … Five. (v) others … … … Fifty. (e) Transformers, transformer kiosks, sub-station equipment and other fixed apparatus (including plant foundations)- (i) Transformers including foundations) having a rating of 100 kilovolt amperes and over. … … Thirty-five. (ii) others … … … Twenty-five. 38 [Act No. XV of 1954] Description of asset. (1) Number of years or period. (2) (f) Switchgear, including cable connections … … Twenty. (g) Batteries … … … Ten. (h) (i) Underground cables, including joint boxes and disconnecting boxes. … … Forty. (ii) Cable duct system … … Sixty. (i) Overhead lines, including supports- (i) lines on steel or reinforced concrete supports operating at nominal voltages higher than 13.2 kilovolts. … … Thirty. (ii) other lines on steel or reinforced concrete supports. … … Twenty-five. (iii) lines on wood supports … … Twenty. (j) Meters … … … Fifteen. (k) Self-propelled vehicles … … Seven. (l) Static machine tools … … Twenty. (m) Air conditioning plant- [Act No. XV of 1954] 39 Description of asset. (1) Number of years or period. (2) (i) Static … … … Fifteen. (ii) Portable … … … Seven. (n) (i) Office furniture and fittings … … Twenty. (ii) Office equipment … … Ten. (o) Apparatus let on hire- (i) other than motors … … Seven. (ii) motors. … … Twenty. (D) Assets purchased second-hand and assets not otherwise provided for in this table. Such reasonable period as the Government determine in each case having regard to the nature, age and condition of the asset on the vesting date. * * *