Fixed Assets--- doubt

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sangita (Querist)

03 April 2009 hiii frnds..
i hv a doubt related to incidental exp which is as follows....

A car has been purchased in the name of XYZ Co... Whether incidental expenses such as Registration chrgs, road tax etc are to be CAPITALISED?????Whether depre should be provided??????

Awaiting ur reply
Thanks in anticipation
SANGITA

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

03 April 2009 Road tax has to be capitalised because now it is life time tax. Registration charges has to be charged to profit and loss account.

Depreciation to be charged on road tax also.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)

03 April 2009 registration charges and road tax both need to be capitalised and than depreciation should be provided.

Taranjit Singh

Taranjit Singh (Expert)

03 April 2009 As per section 3 of Delhi motor vehicle taxation Act 1962 every vehicle owner has to pay road tax at the time of registration of his vehicle. So it has to be capitalised for charging depreciation.

Mukund

Mukund (Expert)

04 April 2009 RTO TAX & Registration charges is one time expenses so it should be capitalise & in case of Insurance it should debited to P & L A/c

Depreciation @ 15% to be provied

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