As 16 capitalisation of preclosure chrges
This query is : Resolved
brijmohanpareek
(Querist)
05 August 2011
In Connection with AS 16 kindly advise on Capitalisation of Loan preclosure charges and Overdue interest charged by Bank on Delayed Payment of installment.
CA. Vikash Dwivedi
(Expert)
05 August 2011
preclosure charges can be capitalised as it is BC directly attirbutable to borrowing provided asset is Qualified asset.
Penal interest (i believe and not sure )can not be capitalised.
Penal interest (i believe and not sure )can not be capitalised.
brijmohanpareek
(Querist)
05 August 2011
Thanks Vikas but
1.)will your answer be same in case we have preclosed a loan and gone for other loan on the same Project ?
1.)will your answer be same in case we have preclosed a loan and gone for other loan on the same Project ?
CA. Vikash Dwivedi
(Expert)
05 August 2011
Ans is No.
where loan is replaced with other loan then NO.
where loan is replaced with other loan then NO.
CA. Vikash Dwivedi
(Expert)
05 August 2011
Ans is No.
where loan is replaced with other loan then NO.
where loan is replaced with other loan then NO.
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