Expenses on Relocation of Machinery
This query is : Resolved
Baljinder Singh
(Querist)
21 September 2007
Sir,
We have shifted Old Machinery from our Bahdurgarh (Haryana) unit to Banglore Factory an amount of Rs.9 Lac and paid Freight Rs.30000/-, which we were paid entry tax. Further we have paid Rs.60000 on installation/make of foundation.
I would like to know that can we capitalised these expenses or not.
Pls advise us the treatment of expenses.
Regards
Baljinder
We have shifted Old Machinery from our Bahdurgarh (Haryana) unit to Banglore Factory an amount of Rs.9 Lac and paid Freight Rs.30000/-, which we were paid entry tax. Further we have paid Rs.60000 on installation/make of foundation.
I would like to know that can we capitalised these expenses or not.
Pls advise us the treatment of expenses.
Regards
Baljinder
21 September 2007
Hello Mr Baljinder,
You cannot treat these as Expenses. This is to be added to the value of the Capital cost
You cannot treat these as Expenses. This is to be added to the value of the Capital cost
21 September 2007
Dear Mr. Baljinder Singh,
In my opinion you should capitalize the expenses because both the works has saperate legal entity and registrations like excise and sales tax etc.
Afterall company is same but you should treat them as a saperate branches and do accordingly.
In my opinion you should capitalize the expenses because both the works has saperate legal entity and registrations like excise and sales tax etc.
Afterall company is same but you should treat them as a saperate branches and do accordingly.
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