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Capitalisation

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Himansu (Querist)
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16 March 2012 i have purchased additional 10 ups costing me Rs 20000 ( Rs 2000 per piece x 10 ).
whether it should be capitalised or expensed of ????

Querist : Anonymous

Querist : Anonymous (Querist)

16 March 2012 dear sir
if the transporter bill didnt contain the information who is to pay service tax & no more data on service tax ,can he still be liable(let the receiver is a co)

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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16 March 2012 There is a clear demarcation between assets & expenses.

If you are in UPS business -expenses

Otherwise-capitalize

For the second case , if service recipient pays service tax under Service head "transfer of goods by road", that amount can be taken as cenvat"

If service tax due on transportation of a consignment has been paid or is payable by a person liable to pay service tax, service tax should not be charged for the same amount from any other person, to avoid double taxation(circular 79/9/2004-st).

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