Capital work in progress

This query is : Resolved

Jagadish (Querist)
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17 March 2009 We have started one project and all expenses related to that project am debiting capital WIP.Now we have purchased a vehicle exclusively using this project. I have doubt whether i accounted as fixed assets or as capital WIP

Kindly clarify the doubt

Thanks in Advance
Jagadish

Shailesh Prajapati

Shailesh Prajapati

(Expert)
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17 March 2009 In My Opinion the Vehicle is a separate assets and it has a separate category in Company Act as well as in Income Tax Act. work in Progress mean the work is in progress on a certain assets. but in a vehicle which you have purchased is fully completed Asset on which no further work is required. Hence the same may not be allowed in the WIP.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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17 March 2009 Can only be included if the complete project undertaken like scientific research etc. otherwise it is a seprate asset and has to be shown in FA.

Jagadish

Jagadish (Querist)
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17 March 2009 Thanks to all for reply

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