Capitalise it or not (Accounts)

This query is : Resolved

mudit gupta

( Author )
29 July 2012

dear all,
i purchased a capital asset for 25,00,000/-.
now the bill i received is inclusive of:-
-machine value
-vat
-freight

but these items are not shown seperately in the invoice i.e 25,00,000/- is inclusive of all these items.

so my query is whether should i claim freight of 1,00,000/- as an expense or consider it to be in machine cost i.e to capitalize the whole amount??
(the supplier had provided me the copy of bilty from which i came to know how much is the freight paid by the supplier)

CA M Indani

( Expert )
29 July 2012

capitalise whole amount.

mudit gupta

( Author )
30 July 2012

thanx expert...

sir, now some variation in my query...
the capital asset is a crane which has been directly sent at the site of construction.
the service receiver has reimbursed me rs75,000/- out of rs 1,00,000/- as mentioned above.
now will this 75,000/- would form part of my income since i m claiming dep on rs 1,00,000/- freight by capitalising it as u suggested??

or will there b some better compliances or technique to do it??

thanx once again