Insurance on new car
This query is : Resolved
12 October 2012
does insurance on new car be capitalised or charged as revenue expense..???
12 October 2012
In one view it is capital expenditure and in an another view it is revenue expenditure. But however all expenditures made for the purpose of purchase or installation of capital asset would be capital expenditure. Based on these principle we are following insurance charges incurred for the first time at the time of purchase of car is capitalised and further renewals of insurance policy will be revenue expenditure.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
12 October 2012
As is decided in various case laws, for the existing entities it may be treated as revenue expenses at the choice of entity
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
- Section 270A penalty
- GSTR 1- Amend Credit Note
- Supply to unit situated in SEZ
- International transfer pricing- -> father entity vs son entity ->WHERE NO mutual say in management
- TDS AFTER SUBMISSION OF 15G OR H
- Tax liability on gift amount given to blood relation
- Gst registration rule 14A
- Reimbursement of expense- GST applicable or not
- Acting as an Agent
- Temporary GST registration
- GSTR 9C- Table 9
- GST Registration Application -Rejected
- Problem in filing Returns for International workers in EPFO
- Clarification for reversal of IGST on transfer of duty-free imported goods from EOU to DTA unit
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
