Capitalise it or not
This query is : Resolved
29 July 2012
dear all,
i purchased a capital asset for 25,00,000/-.
now the bill i received is inclusive of:-
-machine value
-vat
-freight
but these items are not shown seperately in the invoice i.e 25,00,000/- is inclusive of all these items.
so my query is whether should i claim freight of 1,00,000/- as an expense or consider it to be in machine cost i.e to capitalize the whole amount??
(the supplier had provided me the copy of bilty from which i came to know how much is the freight paid by the supplier)
i purchased a capital asset for 25,00,000/-.
now the bill i received is inclusive of:-
-machine value
-vat
-freight
but these items are not shown seperately in the invoice i.e 25,00,000/- is inclusive of all these items.
so my query is whether should i claim freight of 1,00,000/- as an expense or consider it to be in machine cost i.e to capitalize the whole amount??
(the supplier had provided me the copy of bilty from which i came to know how much is the freight paid by the supplier)
29 July 2012
capitalise whole amount.
30 July 2012
thanx expert...
sir, now some variation in my query...
the capital asset is a crane which has been directly sent at the site of construction.
the service receiver has reimbursed me rs75,000/- out of rs 1,00,000/- as mentioned above.
now will this 75,000/- would form part of my income since i m claiming dep on rs 1,00,000/- freight by capitalising it as u suggested??
or will there b some better compliances or technique to do it??
thanx once again
sir, now some variation in my query...
the capital asset is a crane which has been directly sent at the site of construction.
the service receiver has reimbursed me rs75,000/- out of rs 1,00,000/- as mentioned above.
now will this 75,000/- would form part of my income since i m claiming dep on rs 1,00,000/- freight by capitalising it as u suggested??
or will there b some better compliances or technique to do it??
thanx once again
31 July 2012
Capitalise costs net of reimbursements.
Exclude cenvatable duties which will be offset against company's obligations on sales.
Exclude cenvatable duties which will be offset against company's obligations on sales.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- DELIVERY GOLD & SILVER AND OTHER ETF TRADING PROFIT AS BUSINESS INCOME
- GSTR-1A How to update Invoice
- Excess salary payment.
- 3cd- cash system of accounting is allowed?
- Provision for loans that are under Revenue Recovery
- APPLICABILITYOF GST ON STUDENT HOSTEL FEES
- Form 121-contradictory opinions
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Stamp Paper for partnership firm change new income tax 2025
- TDS on Purchase of Immovable Property by NRI from NRI
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
