Freight charges incurred on purchase of fixed assets
This query is : Resolved
12 April 2016
I want to know whether the Freight Charges incurred will be added to the Cost of Fixed assets purchased. The fixed asset does not require special installation charges. For Ex.: freight incurred in purchasing Finished products such as Computer or vehicles as Fixed Assets.
1) What will be the treatment from Accounting Point of view? and
2) What will be the treatment as per Direct Tax Law?
Please help and guide me in this regard.
1) What will be the treatment from Accounting Point of view? and
2) What will be the treatment as per Direct Tax Law?
Please help and guide me in this regard.
12 April 2016
1 Freight incurred for purchasing fixed asset has to be added to the cost of fixed assets.
2 Direct tax law allows such capitalization.
2 Direct tax law allows such capitalization.
Message likes :
1 times
12 April 2016
It needs to be added(capitalised) to the cost of the asset.
Message likes :
1 times
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
- Income tax return change regime form necessary or not?
- EXEMPTION OF LONG TERM GAIN UNDER SECTION 54F
- Machinery taking back from repair work shop
- Resignation of auditor and appointment and cfss
- Refund of Rs.4,00,000/- pursuant to Appeal Order – Deceased Proprietor & Closed Bank Account
- Refund credit after 143 (1) intimation
- Processing delay
- RCM PAYMENT OF APRIL 2025 NOT PAID IN YEAR AND NOW PAYING IN OCTOBER 2026 RETURN
- FOB freight
- TAX TREATMENT OF COMMODITY
- Clarification on 15% Saudi Withholding Tax and Refund Eligibility
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
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
