Capex or revenue expenditure

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Asawari Malhotra (Querist)
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15 June 2013 are the installments paid for hire purchase capex or a revenue expenditure ? accordingly will i be allowed depreciation u/s 32 on the asset ? also is the interest element included in the installments captalised ?

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Guest (Expert)

15 June 2013 In case of hire :

Payment on account of cost of the asset shall be entitled for depreciation in the hands of assessee.

For the interest it is allowed as revenue expenditure.

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