Fixed asset procure for replacement

This query is : Resolved

Akash Unadkat (Querist)
Follow

23 November 2014 If i Buy a New Plant & Machinery / Furniture / Office Equipment, I Buy it NEW and pay amount of it.
But above New PROCUREMENT is actually REPLACEMENT of an OLD that Item.
[Suppose, IF i had 20 years old CNC Machine, now its Not Working and its life of working is over, and i Buy NEW in REPLACE of that]

now my QUESTION is What is Accounting Treatment ??
to Capitalise above [due to its life is more than one year] ???
or Book it as Expense [due to replacement of an old] ??
- AKASH UNADKAT

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

23 November 2014 Capitalise it.
A block of asset concept has been introduced. This new machine will fall in the same block as that of the earlier one.

Rupesh Jain

Rupesh Jain (Expert)
Follow

25 November 2014 you have to capitalized the assets under the income tax act you have the block of this assets and add the value in this block when you sold the old assets then you have to deduct the value with the sales price

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Dhananjay Singh

Hmr Babu

Mikilesh Shah

CA Jyoti Singh

Phani

Subscribe Now

Fixed asset procure for replacement

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Accountant

CA Final

Article Assistant

GST CONSULTANCY

Manager- Finance and Compliance