What is the accounting head of following items :
Parking lot & lawn made by marriage places - it is part of land or building ?
CA Manish K Dhoot (CA, B. Com, NCFM, CPCM) (5015 Points)
24 March 2012What is the accounting head of following items :
Parking lot & lawn made by marriage places - it is part of land or building ?
nitin suvarna
(C.A FINAL)
(828 Points)
Replied 24 March 2012
acc to me it should be part of land & bldg
Devendra
(Chartered Accountant)
(4775 Points)
Replied 24 March 2012
It should be capitalized under Buildings and depreciation should be claimed @ 10% on the same.
Regards,
Devendra Kulkarni
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 24 March 2012
Provide clear answer.
It is part of land or building.
Building is eligible for depreciation. so plz provide clearity...
Suguna
(VP)
(98 Points)
Replied 24 March 2012
if u are getting any income from the lawns then it neede to be included under building. but according to me lawns maintenence is an expense and it needs no capatilization. the same is the case with parking lot . will u get any income from the head. if yes then it can be shown under building. else what is the requirement. the expense can be written off.
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 24 March 2012
Marriage place is newly established. parking is made for people's vehicle who will attend marriage.
there is no separate income income from psrking & lawn.
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 24 March 2012
Marriage place is newly established. parking is made for people's vehicle who will attend marriage.
there is no separate income income from parking & lawn.
Suguna
(VP)
(98 Points)
Replied 24 March 2012
since it is new established assuming u mean the building then u shold capitalize the entire cost to building then u can claim depreciation,as the source of income is the building.
CA.Vinita Gupta
(Deputy Manager- Finance)
(2918 Points)
Replied 25 March 2012
Its a Part of Building and Depreciation can be claimed
sajid
(Auditor)
(214 Points)
Replied 26 March 2012
Parking and Lawn is a part and parcel of the Building, Depreciation must be claimed.
Vaiibhav Gupta
(Founder & Promoter JSR Fincon Inc)
(89 Points)
Replied 27 March 2012
u can capitalize the entire amount in building and then claim depreciation on that , as afar as repair and maintenace of parking & lawn is concerned u can expense it off.
Thanks
Vaiibhav Gupta
Maulik
(Ca Final Student)
(25 Points)
Replied 29 March 2012
Parking should be accounted under the head BUILDING and lawn should be accounted under the head LAND. accordingly depreciation should be provided on PARKING only.
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