Depreciation
This query is : Resolved
27 May 2009
Dear Sir,
What is the accounting treatment of Plants & trees purchased from a nursery to be sowed along the boundary of a manufacturing unit. What is the treatment of this expenditure captial or revenue & under what head of accounts it is to be accounted for. Purchase is made for a new manufacturing unit and expenditure is substantial. Production of this unit has not yet been commenced so definately this is a capital expenditure. What is the rate of depreciation under Income Tax Act, 1961 under which block. Please advice
Thanks
CA Rajpreet Singh
+919888035627
What is the accounting treatment of Plants & trees purchased from a nursery to be sowed along the boundary of a manufacturing unit. What is the treatment of this expenditure captial or revenue & under what head of accounts it is to be accounted for. Purchase is made for a new manufacturing unit and expenditure is substantial. Production of this unit has not yet been commenced so definately this is a capital expenditure. What is the rate of depreciation under Income Tax Act, 1961 under which block. Please advice
Thanks
CA Rajpreet Singh
+919888035627
28 May 2009
Since purchasing of plants does make any asset come into existence, it will be treated as revenue expenditure.
Amount is not the criteria for determining whether the expenditure is revenue or capital.
You name the account as per your wish possibly just as Plant purchased A/c.
Amount is not the criteria for determining whether the expenditure is revenue or capital.
You name the account as per your wish possibly just as Plant purchased A/c.
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
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Itr 1 processing
- Reporting Income under Section 44ADA
- ITR 1: Details for showing Exempt Income
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Bank Accounts in Balance Sheet for ITR 3
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR validation error - Balance sheet is not filled
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
