Capitalization_ventilation cooling system installed plant

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Amit

(Querist)
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11 June 2019 We have installed a Ventilation cooling system at Plant, where can we classify this Asset.
Will it be under Office Equipment or Plant & Machinery.

Please advise.

Regards

Amit Nimbalkar

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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12 June 2019 It's a plant & machinery

Amit

Amit

(Querist)
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12 June 2019 Hi, CA Rashmi Gandhi

Could you please explain why it should be capitalized under plant & machinery. Do you have any previous example, so that I can explain my seniors.

Regards

Amit

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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16 June 2019 Because the assets are installed at plant so,same is considered as plant & machinery if same is installed at office then ie will not be capitalized under P &M

Amit

Amit

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24 July 2019 Thanks for the Solution.

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