Cash payment above 10000 applicable on capital expenditure
This query is : Resolved
01 April 2017
We have purchased the below assets :-
1) old machine in cash of rs. 125000 and paid 12100 for its installation.
2) old car in cash for rs. 150000 and paid rs. 14000 for repairing in cash and 11500 for insurance in cash.
My queries are that can we capitalise the above assets and debit the expenses which incurred on above. Also can we claim depreciation on the above assets.
Please guide me.
Rakesh sharma
1) old machine in cash of rs. 125000 and paid 12100 for its installation.
2) old car in cash for rs. 150000 and paid rs. 14000 for repairing in cash and 11500 for insurance in cash.
My queries are that can we capitalise the above assets and debit the expenses which incurred on above. Also can we claim depreciation on the above assets.
Please guide me.
Rakesh sharma
03 April 2017
The installation charges is required to be capitalized as without installation, the machine cannot be "put to use". In the second case, if the repair is required for the machine to bring it to the working condition, it has to be capitalized. If you capitalize asset, depreciation can be claimed.
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
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- TDS Deducted AY-2013-14 Not Reflected in 26as
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- ADVANCE PAYMENT OF ADVOCATE
- NRI starting business in India
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- FORM 141 SDV query
- Invertaded duty struture
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
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
