Capitalisation during construction period
This query is : Resolved
20 August 2012
Expenses related to the construction of as Asset is capitalised during construction period, what if I earn Interest income from the surplus fund parked in bank or money market instruments????
whether it has to be reduced from my cost of asset (net of tax) ???
whether it has to be reduced from my cost of asset (net of tax) ???
20 August 2012
how you can relate surplus fund from construction.
i mean surplus funds you are getting from where.
if u r capitalising the interest on fund and also getting interest then u must reduced from construction cost
i mean surplus funds you are getting from where.
if u r capitalising the interest on fund and also getting interest then u must reduced from construction cost
Message likes :
1 times
20 August 2012
Actually this funds have come from the loan taken for construction of asset. Amount of loan has not been fully utilized so from the surplus fund company has made investment and company has earn interest on the same.
now by what amount cost of assets is to be reduced means gross interest amount or net interest amount after paying income tax gross interest amount???
now by what amount cost of assets is to be reduced means gross interest amount or net interest amount after paying income tax gross interest amount???
20 August 2012
avoid income tax in this case.
if ur assuming income tax then xonsider in both i mean adding and reducing.
if ur assuming income tax then xonsider in both i mean adding and reducing.
20 August 2012
assuming at the time adding??
sir didn't got u.
sir didn't got u.
20 August 2012
I Mean If You are Considering Income Tax, Then Consider in Both Aspect.
Adding & Reducing Both Cases of Interest.
Adding & Reducing Both Cases of Interest.
Message likes :
1 times
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
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
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
