Capitalisation of fixed assets

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NEETA AGARWAL (Querist)
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01 June 2015 Dear Members kindly suggest for the following:
whether Demand of Entry Tax paid under Amnesty scheme related to construction of the building should be capitalised in the building after its completion?????

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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01 June 2015 after completion it will not be capiltalised as per as 10 but will be charged to profit and loss a/c

NEETA AGARWAL

NEETA AGARWAL (Querist)
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01 June 2015 Dear Tushar,
Agreed with you that as per AS-10 it should not be capitalised. But if it is charged in the P/L then entire amount will be disallowed in 14-15 because entry tax relates to F.Y.11-2 & F.Y.12-13and it is paid under amnesty scheme??

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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01 June 2015 Accounts and income tax are 2 different things for generally accepted accounting principle i.e for making p n l and bal sheet u need to follow accounting concepts conventions and principles as stated , for income tax u need to follow income tax and rules made thereunder.

but if exp is related to fy 11-12 and 12-13 then it will be prior period item and must be recorded as per AS 5.