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Capitalisation of borewell cost

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Querist : Anonymous

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Querist : Anonymous (Querist)
21 June 2011 Can any one suggest the accounting treatment of borewell and drilling expense in case of service rendering company?

Is this forming part of building cost or plant cost, both for the purpose of accounting and Income tax?
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Ram Avtar Singh

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Ram Avtar Singh (Expert)
21 June 2011 all expenses to be capitalize up to installation.
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