Capital Expenditure Vs. Revenue
This query is : Resolved
21 May 2010
Dear Sirs,
One of the Company has borrowed term loan for purchase of Fixed Assets. Please clarify as to whether the processing charges paid by the company to the bank needs to be capitalised?
Thanks in Advance
Dharmaraju
One of the Company has borrowed term loan for purchase of Fixed Assets. Please clarify as to whether the processing charges paid by the company to the bank needs to be capitalised?
Thanks in Advance
Dharmaraju
Akbar Mirza
(Expert)
21 May 2010
As per AS 16, Processing charges paid for borrowing Term Loan for purchase of asset shall be capitalised with the fixed asset.
Message likes :
1 times
CMA.Palani Arumugam
(Expert)
21 May 2010
Agreed.
Message likes :
1 times
CA Ravi Sisodia
(Expert)
21 May 2010
Agree with experts.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Nursery business
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
