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
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.
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.
CAclubindia
