CAPITAL / REVENUE EXPENDITURE
This query is : Resolved
17 December 2008
Dear all
My company has purchased a new car and insurance charges for one year has been paid to vendor at the time of purchase. i want to know whether such charges will be capitalsed or not? please suggest the treatment ASAP.
My company has purchased a new car and insurance charges for one year has been paid to vendor at the time of purchase. i want to know whether such charges will be capitalsed or not? please suggest the treatment ASAP.
17 December 2008
Insurance premium paid at the time of purchase of car is capital expenditure.
17 December 2008
Included in capital expenditures are amounts spent on:
acquiring fixed assets
fixing problems with an asset that existed prior to acquisition
preparing an asset to be used in business
legal costs of establishing or maintaining one's right of ownership in a piece of property
restoring property or adapting it to a new or different use
starting a new business
Hence, Insurance paid by you is a capital expenditure.
acquiring fixed assets
fixing problems with an asset that existed prior to acquisition
preparing an asset to be used in business
legal costs of establishing or maintaining one's right of ownership in a piece of property
restoring property or adapting it to a new or different use
starting a new business
Hence, Insurance paid by you is a capital expenditure.
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
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Scrutiny and reopening of past returns
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Section 194JA & JB Income which ITR Form to use
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- Not able to file ITR
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- LIABILITY ADJUSTMENT
- Capital Gains on sale of residential flat
- Accounting with Claude
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
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
