Capitalisation of fixed asset in case of rented premises

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Rahul Dwivedi (Querist)
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06 August 2014 Restaurant under Trust 1. Installation charges paid towards installation of a fixed assets on a rented premises will also be capitalised or not. -Control Panel - Rs. 106000/- -Installation Charges* - Rs 60,000/- *Installation Charges include all boards, plugs, wire etc. total wiring of restaurant was changed and connected with control panel. -CCTV - Rs. 50000/- - wiring etc. - Rs. 29000/-

CA UMESH DULAL

CA UMESH DULAL (Expert)
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06 August 2014 You can capitalized the same if it falls on the fixed assets category. Rented or self owned building/land will not have effect on nature of assets.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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06 August 2014 But during the time of charging depreciation, this fact should be taken into consideration

1. If this assets are to be abandon at the time of vacating the building, then it has to be considered in determining the useful life of assets.

2. If you will get fair price for the assets at the time of vacating the building, such value should be considered as Scrap Value.

Rupesh Jain

Rupesh Jain (Expert)
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07 August 2014 you can take as assets and capitalized and make depreciation .

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