Capitalisation of installation expenses

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Rabindra Sahoo (Querist)
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16 March 2015 Dear Sir/madam ,
Kindly clarify me in which case we can show the installation cost as expenses and in which case we can capitalised it...

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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16 March 2015 every time for any capital asset installation exp needs to be capitalised as per as 10

Rabindra Sahoo

Rabindra Sahoo (Querist)
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16 March 2015 yes sir, u r correct but my question is while purchasing asset we incurred some installation cost ,after can we show as expenses of both asset cost and installation cost.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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16 March 2015 at purchase it needs to be capitalised only.....after that only if it increase the life of asset the needs to be capitalised.

Rabindra Sahoo

Rabindra Sahoo (Querist)
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16 March 2015 So sir not required to show it as expenses at the time of purchase also.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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16 March 2015 its added at time of purchase to cost of acquistion.

it is expensed later when it does not add value or increases the life of asset.

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Rabindra Sahoo

Rabindra Sahoo (Querist)
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16 March 2015 Thank You very much Sir...

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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16 March 2015 you are welcome rabindra sahoo.................

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