Agriculture land fixed assets
This query is : Resolved
anil lamboria
(Querist)
04 June 2013
I have a construction business, I have purchased a Agriculture Land on loan. I'm paying interest on it Amounting Rs. 2,50,000/-..
Now how will I treat the interest in Books of Accounts Weather To Capitalise it or to treat is as expenses ...
And also how Should I show This Agriculture Land In my Book Of accounts ...
Note : I am using this agriculture Land For Agriculture Purpose only..
Now how will I treat the interest in Books of Accounts Weather To Capitalise it or to treat is as expenses ...
And also how Should I show This Agriculture Land In my Book Of accounts ...
Note : I am using this agriculture Land For Agriculture Purpose only..
CA Sourabh Agarwal
(Expert)
06 June 2013
If the land is available for use since the date of purchase itself, you are not allowed to capitalise any interest.
On facts given, Show agriculture land as asset, do not charge depreciation, write off interest expenses.
On facts given, Show agriculture land as asset, do not charge depreciation, write off interest expenses.
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