Whether interiors used for rented premises be treated as revenue?? if so is tere any case law inder income tax act 1961...
Sidharthan (Articled Assisstant ) (25 Points)
20 April 2011Whether interiors used for rented premises be treated as revenue?? if so is tere any case law inder income tax act 1961...
Rachit
(Ca-Final Article.)
(565 Points)
Replied 20 April 2011
Devendra
(Chartered Accountant)
(4775 Points)
Replied 20 April 2011
Interior work done at the rented premises in to be considered as a Capital Expenditure.
Regards,
Devendra
Milan Maheshbhai Lakhani
(Article Clerk)
(89 Points)
Replied 20 April 2011
According to me, interior work done in the rented premises should be treated as revenue expenditure.
Harsh Karan Singh
(58 Points)
Replied 20 April 2011
Hi,
Your query misses to specify as to the nature of use to which interiors of therented premises are put. Further, it also depends on the fact as to how are you going to pay for the use of the premises and the interiors. Is rent paid for both inclusive of use of everything or is it possible to separate the rent on the basis of use of interiors and rest of premises.
From your statement it appears that rent is being paid for the use of interiors. The same should be treated as revenue.
In case there is anything else that you want to know, please provide a more sanitized detail of your problem and then maybe we can give a more appropriate opinion.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 21 April 2011
have u tried to ask that u occupy a rented premises on rent and want to spend on interiors?
in such case if the rented premises is used for business purpose, then upto 5000.0 its revenue expenditure, more than 5000 is capital expenditure
if the premises is used for personal living and not used for business then these expenses are met for living and would be clubbed in drawings.
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 21 April 2011
To be debited to leasehold Improvements by capitalising and to be written off quickly based on lease term /period