ENTRY OF CIVIL MATERIAL AT TIME OF RENOVATE THE FACTORY BUILDING
This query is : Resolved
Quick Summary
17 December 2025
Dear Sir,
Let me know in which head expense out purchase of BRICKS AT TIME OF RENOVATE THE FACTORY BUILDING.
Please advice for the accounting in which head also let me know it will be expense out or Capitalize
Let me know in which head expense out purchase of BRICKS AT TIME OF RENOVATE THE FACTORY BUILDING.
Please advice for the accounting in which head also let me know it will be expense out or Capitalize
Dhirajlal Rambhia
(Expert)
18 December 2025
- If used for renovation/extension/improvement of factory building:
- Record under Fixed Assets → Factory Building (or "Building Renovation/Improvement" sub-head).
- It is not treated as raw material or consumable expense, because it directly relates to the structure of the building.
- If used for minor repairs/maintenance (not increasing life or capacity):
- Record under Repairs & Maintenance Expense → Factory Building Repairs.
- Record under Fixed Assets → Factory Building (or "Building Renovation/Improvement" sub-head).
- It is not treated as raw material or consumable expense, because it directly relates to the structure of the building.
- If used for minor repairs/maintenance (not increasing life or capacity):
- Record under Repairs & Maintenance Expense → Factory Building Repairs.
Dhirajlal Rambhia
(Expert)
18 December 2025
Expense vs. Capitalization
- Capitalize (Add to Asset Value) when:
- Bricks are used for structural renovation, extension, or improvement of the building.
- The renovation increases the future economic benefits (e.g., longer useful life, increased capacity, or efficiency).
- Example: Constructing a new wall, strengthening foundations, extending the building.
- Expense (Charge to P&L) when:
- Bricks are used for routine repairs or maintenance.
- The work only restores the building to its original condition without enhancing its future benefits.
- Example: Replacing a few damaged bricks in existing walls.
- Capitalize (Add to Asset Value) when:
- Bricks are used for structural renovation, extension, or improvement of the building.
- The renovation increases the future economic benefits (e.g., longer useful life, increased capacity, or efficiency).
- Example: Constructing a new wall, strengthening foundations, extending the building.
- Expense (Charge to P&L) when:
- Bricks are used for routine repairs or maintenance.
- The work only restores the building to its original condition without enhancing its future benefits.
- Example: Replacing a few damaged bricks in existing walls.
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
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- Form 144 TDS Return Validation Error – Mandatory Fields
- Applicability of tax on invoice
- LLP audit and disclosure
- Capital gains in IT returns
- Form 144 TDS Return Validation error
- Advances to related party
- TDS- 2026-27 Q1 Correction
- Ito add credit side of bank
- Employee secondment
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
