Insurance premium- on fixed asset
This query is : Resolved
21 June 2014
Insurance premium paid on insurance of fixed asset is capital expenditure OR revenue expenditure.????
21 June 2014
For First year insurance capitalize it. For following years book it as revenue expenditure(P&L A/c)
21 June 2014
Capital expenditure is the expenditure which improve the life of assets and increase the efficiency of the assets, therefore insurance premium paid on fixed assets is neither improve the life of assets nor improve the efficiency therefore it is revenue expenditure.
21 June 2014
Capital expenditure is the expenditure which improve the life of assets and increase the efficiency of the assets, therefore insurance premium paid on fixed assets is neither improve the life of assets nor improve the efficiency therefore it is revenue expenditure.
21 June 2014
But Jugal we have to capitalize the insurance premium for first year.
21 June 2014
First Year Capitalized or Not?
21 June 2014
It will b capitalized for ist year and treated as revenue for the following years. This is the practical method.
21 June 2014
it is revenue expenditure and charge to profit & loss a/c
it not increase the assets life or useful life or not related to mfg of assets
it not increase the assets life or useful life or not related to mfg of assets
21 June 2014
Rupesh plz update urself.
22 June 2014
For all years it is a revenue expenditure as it does not increase / maintain life of asset
only insurance allowed to be capitalised is for transit
only insurance allowed to be capitalised is for transit
24 June 2014
mehulmukhti is right, only transit insurance is capitalized and rest are revenue.
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
- Post Office RD Interest
- Reporting Income under Section 44ADA
- Itr 1 processing
- Building and other construction workers welfare cess act 1996
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Bank Accounts in Balance Sheet for ITR 3
- TDS ON CASH WITHDRAWALS...
- Eway bill for machinery reparing
- Lift replacement entries in housing society
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
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
