Capiatalisation of finance charges
This query is : Resolved
26 November 2012
vehicle value 45 lakhs
down paymnt 5 lakhs
loan taken 44 lakhs
excess of 4 lakhs ( 45-4) is fiance charges so hw can i capitalise .
down paymnt 5 lakhs
loan taken 44 lakhs
excess of 4 lakhs ( 45-4) is fiance charges so hw can i capitalise .
CA Pooja Agarwal
(Expert)
26 November 2012
finance charges cannot be capitalised...
26 November 2012
Yes in this case finance charges CANNOT be capitalised since the asset is not a qualifying asset as per AS 16.
The finance charges shall be allowed as deduction every year.
The finance charges shall be allowed as deduction every year.
CA Ravi Kumar
(Expert)
26 November 2012
Yes, Finance charges cannot be capitalised...
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