Capitalisation of exhibition expenses

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Charu Srivastava (Querist)
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20 April 2015 Please advise the rules and guidelines for capitalisation of expenses related to B2B exhibitions. We have our own brand and participate in National and International B2B exhibitions.

Regards,
Charu

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 April 2015 Exhibition Expenses are not capital in nature and is charged to Profit & Loss Account being Revenue Expenditure.

Charu Srivastava

Charu Srivastava (Querist)
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21 April 2015 Thanks Sanjay. You are right with respect to B2C exhibitions. Expenses on B2C exhibitions are of the nature of revenue expenditure. However, expenses on B2B exhibitions are more in the nature of capital expenditure since the business generation takes time- few months to a few years.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 April 2015 Welcome Charu Ji. If you have proper justification then you can treat it as Deferred Revenue Expenditure.

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