Capitalization of New Vehicle
This query is : Resolved
varun gupta
(Querist)
12 May 2009
Hi,
If a company purchases a new vehicle say a car for total cost of Rs 400000 which includes Rs 15000 as 1st yr dep also, then shd the co. capitalize full 400000 in books or it shd capitalize only 390000 and expense off the insurance amt of Rs 10000?
If a company purchases a new vehicle say a car for total cost of Rs 400000 which includes Rs 15000 as 1st yr dep also, then shd the co. capitalize full 400000 in books or it shd capitalize only 390000 and expense off the insurance amt of Rs 10000?
taxindiaconnect
(Expert)
12 May 2009
I am reqwording your query as following
If a company purchases a new vehicle say a car for total cost of Rs 400000 which includes Rs 15000 as 1st yr Insurance also, then shd the co. capitalize full 400000 in books or it shd capitalize only 385000 and expense off the insurance amt of Rs 15000?
The reply is capitalise entire 4Lac as the first year insurance is an expenditure is to being the motor vehical in working condition.
If a company purchases a new vehicle say a car for total cost of Rs 400000 which includes Rs 15000 as 1st yr Insurance also, then shd the co. capitalize full 400000 in books or it shd capitalize only 385000 and expense off the insurance amt of Rs 15000?
The reply is capitalise entire 4Lac as the first year insurance is an expenditure is to being the motor vehical in working condition.
jegannath G
(Expert)
12 May 2009
Normally Initial year Insurance of any vehicles which is necessary for running on thr road, hence insurance needs to capitalised along with the Vehicles
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- EPF ECR NEW RULES Sep 17th 2026
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
