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Building repair - capital or revenue expenditure ??

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Querist : Anonymous

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Querist : Anonymous (Querist)
06 May 2014 Experts,

There is a co-operative society, and there is no property in the name of the society, it only collects maintenance charges from the members and takes care of all maintenance etc. expenses.

It spends big amount on building repair (main gate of society, parking area etc.) of Rs.3,00,000 (3 lacs) and on bird net Rs.50,000.

My question is, should this expenditure be treated as revenue exp. or it should be capitalized.

According to my view it should not be capitalized, as there is no fixed asset in the name of the society.

Please reply.


Thanks in advance.
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CS,CA F,Numrologi TusharSampat

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CS,CA F,Numrologi TusharSampat (Expert)
06 May 2014 if after repairs if the life of the building is increasing then yes capitalise it.
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