Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Accounting treatment of works contract exp

Save Share

This query is : Resolved

CA Deven (Querist)
Follow

13 January 2014 Can any one guide me regarding the accounting treatment of works contract.

Actually we have done the interior work in our office last week worth RS. 7,00,000/-.

kindly tell me should I need to charge as a fixed assets or as a revenue exp. as a repairs and maintenance.
If as a FA under which head.

CA SHYAM LAL SHARMA

CA SHYAM LAL SHARMA (Expert)
Follow

14 January 2014 I think you have to capitalize the amount of Rs 7,00,000 as a capital assets. If you have made expenditure relating to plant and machinery then you have to capitalise under the relevant head. You can also claim depreciation @ 15.00 %. However, if the expenditure are related to furniture and fixture, then your capital expenditure shall be under that relevant head.

CA Deven

CA Deven (Querist)
Follow

14 January 2014 It is Interior Decoration work...Under which head ?????????

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now