Civil work(foundation) after capitalisatio of machine
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 February 2012
We have capitalised Machine in Mar11 and now we are planning to make civil foundation to that machine to reduce manpower involved in that machine.
So wheather the civil work expensed should be capitalised or charged to P & L account and under what reason.
Regards
Bharat Trivedi
So wheather the civil work expensed should be capitalised or charged to P & L account and under what reason.
Regards
Bharat Trivedi
SOURAV GOEL
(Expert)
28 February 2012
The expenditure on civil work will enhance the Productive Capacity of the Machine, since it will reduce manpower.
There will be a recurring benefit for more than a year.
Hence the expense should be capatalized.
There will be a recurring benefit for more than a year.
Hence the expense should be capatalized.
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
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
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
