Building Repairing Work Expenses Out or Capitalized
This query is : Resolved
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12 May 2023
Dear Sir,
We made repairing work at office ceiling due to Water leakage & Costing is around 10 Lacs.
Approx. 6 Lacs for labouring & 4 Lacs for material use for repairing Both supplier is separate.
Now Question is that this would be Expense out or Capitalized in books ?
Please explain.
We made repairing work at office ceiling due to Water leakage & Costing is around 10 Lacs.
Approx. 6 Lacs for labouring & 4 Lacs for material use for repairing Both supplier is separate.
Now Question is that this would be Expense out or Capitalized in books ?
Please explain.
12 May 2023
Such expenses are generally capitalized.
12 May 2023
Suppose We capitalized but the same situation is happen after Certain years, & Expenses will incurred.
So, What to do in this situation.
So, What to do in this situation.
12 May 2023
Depends upon nature of repairs and its life cycle.
15 May 2023
As I confirmed that this will be last up to 4 to 5 years or may be some unexpected years.
So in this case should we capitalized or Expense out ?
So in this case should we capitalized or Expense out ?
15 May 2023
Its capital expenditure and allowed for depreciation, no other option.
16 May 2023
According to the information given, it appears that the office ceiling repair work was more of a maintenance or restoration investment than a structural upgrade or improvement. In this situation, it is likely that the charge will be recorded as a revenue expense and expensed on the income statement.
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