CAPITAL / REVENUE EXPENDITURE
This query is : Resolved
Ca Vaneet Gupta
(Querist)
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.
CA Tilak Raj Sharma
(Expert)
17 December 2008
Insurance premium paid at the time of purchase of car is capital expenditure.
Ravikumar.G
(Expert)
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
- Gst credit note by supplier
- Reward for festival
- 18% Rent a cab
- Missed uploading GST Invoice
- Movement of goods by packers and movers - type of sale - Reg.
- Appointment of Auditor By Form ADT-1
- Closer of business and itc of capital goods
- Gratuity paid to legal heir above 20 lakh is taxable or not
- ARCA LOGIN
- TDS Return Statement Status
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
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
