Capitalization of office renovation expenses

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Querist : Anonymous

Querist : Anonymous (Querist)

03 April 2018 Sir we have a rented office in which renovation work has done which includes furniture, tiles, paints, labour charges and other renovation exps. I want to know that whether the exps should be capitalize or not. If yes then how?

Expert : Anonymous

Expert : Anonymous (Expert)

03 April 2018 As per my view., We can't capitalize some expenses in the rented building... You can book the Furnitures under fixed asset... All other above said will be book under expense head...

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

03 April 2018 Generally expenses incurred in rented premises cannot be capitalised and it can be debited as repairs & maintenance expenses except the expenses incurred for movable assets like furniture & fittings. other expenses will be debited as maintenance

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

03 April 2018 To be capitalized. Inference - Explanation 1 to section 32(1).

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

04 April 2018 In my view same is not to be capitalized as expenses made on rented office don't be under your ownership & same is also not your assets. So charged it against P&L a/c

RAJA P M

RAJA P M (Expert)

04 April 2018 Furniture will be account in Asset head. Bcoz, It's removable...
All other (paints' tiles) can't removable. So, These are only can book under PandL account.

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2018 Thanks everyone for your suggestions.

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