Interest on loan treatment
This query is : Resolved
Guest
Guest
(Querist)
14 June 2013
can we consider interest charged by bank on loan taken for purchase of asset as addition to assets during the year while preparing depreciation chart.
CMA Ramesh Krishnan
(Expert)
14 June 2013
No. financial charges like interest etc. cannot be capitalised unless it is eligible as Borrowing cost as per AS-16.
CA Vikas Acharya
(Expert)
14 June 2013
also under income tax it can be capitalise upto the date asset is put to use and not after that.
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