CApitalisation of Expenditure

This query is : Resolved

Ishan Bedi (Querist)
Follow

28 August 2008 A company for its expansion purpose inagurates its branch (Manufacturing Unit) in the mid F.Y. 07-08 in other state, where the company incurs all the revenue expenses (viz. Car Expenses, Electric Charges, Flat Rent, General Exp., Staff Welafre, Postage & Stamp, Printing & Stationery, Professional Fees, Telephone & Traveling Expenses) and till the F.Y. 2007-08 production is also not started. All the abovementioned Expenses are directly attributable to such Branch, Can these expenses be Capitalised and added to the cost of the Project, Can these be recognised as pre-operative expenses and added to the work in progress?

Ishan Bedi

Ishan Bedi (Querist)
Follow

10 September 2008 Plz someone help on this topic

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

30 September 2008 If it is expansion of existing unit these can be charged off to revenue.

If it is a new identifiable project they can be treated as preoperative expenses of that project and capitalised to the fixed assets relating to that project if the expenditure are incurred for that purpose.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

sandhya.v

Amit Bagla

Vidish Bhatt

CA. MOHIT SHARMA

T Ramachandran

Subscribe Now

CApitalisation of Expenditure

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Article Assistant

Accountant

CA Final

GST CONSULTANCY