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capitalising the expenditure

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(Querist)
04 April 2009 Dear sir,


we are a private trust providing education to management students. we have taken the building for the class rooms on RENTAL basis. we (trust) restructured the building for the purpose of class rooms and toilets. Trust has incurred the expenditure for the restructuring the buillding Rs. 250000. Should the same should be capitalised or to be treated as the revenue expenditure. Please clarify at the earliest.


with regards,

R. Gurucharan.
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Ca. Rajesh Dhama

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Ca. Rajesh Dhama (Expert)
04 April 2009 THESE EXPENDITURE SHOULD BE TREATED AS REVENUE EXPENDITURE BECAUSE BUILDING HAS BEEN TAKEN OF RENT AND RESTRUCTER ONLY FACILATE THE ACTIVTY IT DOES NOT AMOUNT TO ADDITIONAL RESOURCE FROM WHICH YOU CAN EXPACT FUTURE ECO. BENFIT
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Ca. Rajesh Dhama

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Ca. Rajesh Dhama (Expert)
04 April 2009 THESE EXPENDITURE SHOULD BE TREATED AS REVENUE EXPENDITURE BECAUSE BUILDING HAS BEEN TAKEN OF RENT AND RESTRUCTER ONLY FACILATE THE ACTIVTY IT DOES NOT AMOUNT TO ADDITIONAL RESOURCE FROM WHICH YOU CAN EXPACT FUTURE ECO. BENFIT
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CA Devanshi Gandhi (Ajani)

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CA Devanshi Gandhi (Ajani) (Expert)
04 April 2009 its a revenue expenditure
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CMA KNVV Sri Vidya - Sri Kanth

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CMA KNVV Sri Vidya - Sri Kanth (Expert)
05 April 2009 revenue expenditure
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