Capitalisation of assets
This query is : Resolved
08 May 2015
Sir I want to know that if we purchase Windows 8 to upgrade older version than it should be capitalise...????
Or it will be revenue expenditure as it is replacement of item.???
plz clarify me on this.
08 May 2015
In order to categorize an item as a revenue or capital expenditure, you need to consider following points:
1. Whether the expenditure adds value to existing structure.
2. Whether benefits derived from the said expenditure are accrued over a long period of time.
3. or Whether it just gives benefits for the short term.
If points 1 & 2 are applicable, capitalise. Else treat it as revenue expenditure.
1. Whether the expenditure adds value to existing structure.
2. Whether benefits derived from the said expenditure are accrued over a long period of time.
3. or Whether it just gives benefits for the short term.
If points 1 & 2 are applicable, capitalise. Else treat it as revenue 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
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- LIABILITY ADJUSTMENT
- ITR-3 File/Error Found
- Due Date Clarity
- Accounting with Claude
- TDS _Long term Capital Gain ref.sec 214 Table 2
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- Gst on travel by air for business purposes
- Loss of interest in PF transfer from EPFO to Trust
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- TDS offline utility
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
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
