can we record capital goods as expenses in P&L a/c ???


This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
31 July 2010 we are in textile sector. we purchased designs and treated this expenses as revenue expenses but the modvat credit on designs are taken 50 % in current year and remaining in next year. can excise department disallow this credit as capital goods are recorded as expenses and not capitalised in B/s.
As we not paying excise on output but want to avail credit on capital goods under notification.

thanks

31 July 2010 No there is no problem.

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
31 July 2010 In the sequence of above question, will there be any problem at the time of excise audit??

31 July 2010 in excise there is no problem but in income tax you may face some problem due to capital expendituretreated as revenue exp.

It is totalluy depends how u produce the matter before the ito.


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details