Borrowing cost capitalised.
This query is : Resolved
13 July 2011
Hi,
Can anyone tell me whether to capitalise interest on specific loan amount taken to purchase a vehicle if the order was placed with the dealer and the car was not delivered for two months.
Amount of the vehicle was already paid to the dealer.
Interest was regularly paid to the bank.
Will this asset be called as a qualifying asset under AS16.
Reply ASAP.
Can anyone tell me whether to capitalise interest on specific loan amount taken to purchase a vehicle if the order was placed with the dealer and the car was not delivered for two months.
Amount of the vehicle was already paid to the dealer.
Interest was regularly paid to the bank.
Will this asset be called as a qualifying asset under AS16.
Reply ASAP.
13 July 2011
in your case interest not be capitalised.
13 July 2011
Dear Arpit,
The asset you are talking about would not come in the category of Qualifying Asset (qualifying asset is an asset which takes substantial period of time for its use or sale). so the interest component would not be capitalised.
Regards
Abhisek Tosniwal
The asset you are talking about would not come in the category of Qualifying Asset (qualifying asset is an asset which takes substantial period of time for its use or sale). so the interest component would not be capitalised.
Regards
Abhisek Tosniwal
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
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Copyright software
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- Regarding TDS Applicability For Director Remuneration
- Multiple trade mark
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
