Capitalization of epoxy flooring

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When installing epoxy flooring over an existing concrete floor in a factory, you can indeed capitalise the costs. This expenditure is typically treated as a repair and maintenance expense, allowing you to claim income tax benefits. The justification for capitalisation, particularly for auditors, is that the epoxy flooring's lifespan extends beyond one year.

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(Querist)
06 February 2024 Hi,

we have existing cement concrete floor in factory premises. now we are doing epoxy flooring on existing floor, can we capitalize epoxy flooring, please advise.

Regards
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
06 February 2024 Yes, it can be capitalised.
Charge it as repair and maintenance expense to claim income tax benefit.
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manish gupta

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manish gupta (Querist)
07 February 2024 thanks sir,
if any justification for auditor in relation of capitalization.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
07 February 2024 Life is more than one year.
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