capital exp
This query is : Resolved
Devendra Pratap Singh
(Querist)
12 January 2011
sir, what is the meaning of capital expenditure u/s 36(1)?
12 January 2011
Though there is mention of the words "capital expenditure"in section 36(1)(xii), definition is not given therein .In the absence of that, one has to look into the general principles as well as the nature and course of business and the object behind the expenditure to classify whether an item falls under revenue or capital expenditure.
Devendra Pratap Singh
(Querist)
12 January 2011
can u give any example
12 January 2011
general definition is "the expenditure which is not of revenue nature"
12 January 2011
Test of enduring benefit is a criteria to judge whether an expenditure falls under capital or revenue in nature.
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