Inventory
This query is : Resolved
KETUL VORA
(Querist)
24 July 2012
A Company is in manufacturing business of Confectionery items (Like Biscuit, chocolate etc.,)
A company is having lot of Dies & Tools which has been booked as Plant & Machinery
Can it be treated as Inventory ?
(Company is not trading with Dies & Tools and Company has to purchase Dies & Tools in every month due to change in products)
A company is having lot of Dies & Tools which has been booked as Plant & Machinery
Can it be treated as Inventory ?
(Company is not trading with Dies & Tools and Company has to purchase Dies & Tools in every month due to change in products)
Amol S Joglekar
(Expert)
24 July 2012
No. The treatment is not advisable. If you want to treat it as consumables, you need to prove that the benefits arising out of it does not extend beyond one year.
KETUL VORA
(Querist)
26 July 2012
Thanks Amol
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