A s 16 borrowing cost
This query is : Resolved
29 August 2011
I have taken Term loan for a qualifing asset, interest on such loan is paid from my CC account. my question is whether I can capitalise interest on CC account as per AS 16 Borrowing cost.
please suggest. asap.
thanks in advance..
please suggest. asap.
thanks in advance..
29 August 2011
yes, need to capitalize the interest as per AS-16
Message likes :
1 times
29 August 2011
Thanks Mr. Jain, further it is not yet cleared to me whether I can capitalise Interst of both Term Loan and CC account. As I am already capitalising interst on TL, as per your opinion interest on CC account should have to be capitalize.
29 August 2011
U can't capitalize interest on current account in the cited issue.
Message likes :
1 times
29 August 2011
Thanks sir..
29 August 2011
interest on current account can't capitalize becouse it is not related with qualifying assets.
30 August 2011
Your first query was not cleared, you was asking whether interest on term loan has been paid from CC account to be capitalized or not.
In the case if term loan has been taken for qualify assets and interest on term loan has been paid through CC Account then such interest would be capitalized.
And Interest on CC account would not be capitalized since CC Account is not used for any special purpose.
In the case if term loan has been taken for qualify assets and interest on term loan has been paid through CC Account then such interest would be capitalized.
And Interest on CC account would not be capitalized since CC Account is not used for any special purpose.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN BASE ON NOTIFICATION
- Taxable or Tax exempt
- ADVANCE PAYMENT OF ADVOCATE
- TDS Deducted AY-2013-14 Not Reflected in 26as
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- Eway bill not cancelled within 24 hous what can be due
- UNWANTED CREDIT BALANCE OF GST AS PER BOOKS
- Eway bill generation from place other than registeted
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
