Gopal Rathore (Accountant) (27 Points)
29 July 2015Please guide, is it compulsory to capitalise each item purchased value more than INR 5000,which has long usable life of 2-4 or more year Or i can expense out?
CA Puru Goyal
(CA DISA)
(150 Points)
Replied 31 July 2015
Dear Gopal,
As pe the companies act you have to expenses out / or 100% depreciate any addition below 5000.
In your case if you want to expenses out items having cost more than 5000 you can, for that you have to make a policy and it required disclosure .
Gopal Rathore
(Accountant)
(27 Points)
Replied 01 August 2015
Thanks Puru for your clarification.
Is there any detailed process or guidelines written somewhere? So that can present as document to my team.
Regards,
Gopal
CA Puru Goyal
(CA DISA)
(150 Points)
Replied 04 August 2015
Yes , You can refer schedule xiv as per companies Act,1956
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
