Capitalisation of Expenses

This query is : Resolved

Dhiraj Pendhari (Querist)
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05 November 2008 If X a professional visit the plant (under construction) for inspection.He raised Invoice on Y as under

Professional Fees 10000
Conveyance 2000

Service Tax @ 12.36% 1483

Then Conveyance of Rs.2000/- can be capitalised or not as per AS-10 on Fixed Asset issued by ICAI.

Guest

Guest (Expert)

05 November 2008 any expences incurred inrelation to any asset up to its completion stage has to be capitalised and all expenses incurred up to that stage are the part and parsel of cost of that asset.

here conveyance, if it is incurred in relation to that asset(plant), has to be capitalised including the service tax amount(if it is non refundable).

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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06 November 2008 Yes, it is to be capitalised

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