insurance

This query is : Resolved

ABHIJIT (Querist)
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26 May 2010 Q. when any motor vehicle is purchased, insurance on vehicle is to be paid. IS FIRST INSURANCE TO BE CAPITALISED TO VEHICLE??? UNLESS YOU PAY INSURANCE MOTORVEHICLE WILL NOT COME OUT OF SHOWROOM.
IS 1ST INSURANCE TO BE CAPITALISED?

Rasesh

Rasesh (Expert)
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26 May 2010 No. It should not be capitalised.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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26 May 2010 IN MY VIEW IT SHOULD BE CAPITALISED.

Rahul Vora

Rahul Vora (Expert)
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27 May 2010 The period benefit will only be one year. How can we capitalise where period of benefit is only one year. Insurance is renewable every year. So, it should not be capitalised even if it is 1st insurance.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 May 2010 BCOZ THIS EXPENSES IS NECESSARY TO TAKE THE VEHICLE OUT OF SHOWROOM AND INCIDENTAL TO PURCHASE OF MOTOR VEHICLE.
FROM NEXT YEAR IT WILL BE TREATED AS REVENUE EXPENDITURE.

ABHIJIT

ABHIJIT (Querist)
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31 May 2010 any CA pls tell me

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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31 May 2010 https://www.caclubindia.com/experts/purchase-of-car-entry-please-385275.asp

Please check above link.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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31 May 2010 https://www.caclubindia.com/experts/purchase-of-car-entry-please-385275.asp

Please check above link.

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