Above Rs. 5K should be capitalised

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This discussion clarifies capitalisation rules, particularly for expenses exceeding Rs 5,000. It addresses whether such amounts should be capitalised and the requirement for revenue stamps on payment vouchers, noting it depends on the nature of the payment (e.g., salary). The conversation also touches upon updated rules for capitalising plant and equipment with a life of over one year, suggesting company size may influence capitalisation value thresholds.

Daya

Daya (Querist)

29 October 2023 whether above Rs. 5K should be capitalized.
And while payment in cash whether revenue stamp is required to affix on payment Rs. 5K. on payment voucher.

RAJA P M

RAJA P M (Expert)

30 October 2023 No... If salary then required.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

30 October 2023 Capitalisation rules changed, plant and equipment life more than one year has to be capitalised.
Depending upon the size of the company value for capitalisation can be decided.

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