As 16 borrowing costs
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 May 2017
If a company does not built a qualifying asset but it purchases a qualifying asset whether the borrowing costs incurred on it will be capitalized??
Pls solve my query
Pls solve my query
10 May 2017
The asset purchased will be put to use after purchase hence there is no need of any borrowing cost capitalized on it. Such interest has to be charged to revenue.
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 May 2017
In present case machine has purchased on 1-6-2011 and put to use on 1-1-2012.they have capitalized interest for 7 months I.e between 2 dates mentioned above.why so??
10 May 2017
Interest can be capitalized only when machine requires erection and commissioning period of 7 months.
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
- Need help on Minimising Tax on Capital Gains
- TDS applicable invoice date or payment Date Which is important
- Death gratuity, leave encashment, GPF etc
- Aggregate Turnover
- Investment for maturing bank deposits for a retired 66 year old person
- Amount received in account which was given to sons as gift
- Guidance Required on Raising Sale Invoice & E-Way Bill for Machines Already at Customer Premises
- Payment of Bonus Act 1965 applicable in WB
- TDS REFUND CLAIM RELATED
- When a company gifts a new car to its employee.
- GSTR 1 CAN NOT BE FILED AFTER 3 YEARS
- Condonation of Delay u/s 119(2)(b)
- Generation of eBRC in DGFT site for Multiple IRMs against single shipping bill with teo Invoices
- LTCG ON SALE OF RESIDENTIAL LAND
- Money returned by sons given as gift
- GST on Tobacco - as per new notification
- Cant amend a 26QB
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- TDS under section 195.
Trending Online Classes
CAclubindia
