laying down of road expenses

This query is : Resolved

deepak sharma (Querist)
Follow

30 June 2009 hi all,
I want to ask whether in the following situation the expenditure can be treated as deferred revenue expense or can directly be charged to revenue or other possibilites:

conpany has entered into an agreement with the AP govt for laying down of road of 57km in the area which is not owned by the company. The expenditure is around 5 crores. the company is charging this expenditure to P&L a/c in the same year of incurrance. what if the company also recieves subsisdy say 50% of the expenditure.

Please clarify soon..

Ashish Shah

Ashish Shah (Expert)
Follow

24 July 2009 The same can be capitalized as Company infrastructure thought the same may not be owned by the Company.

Owner ship of the asset is some times exempted as condition of capitalization.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Ruchi Shah

manojkumarkk

Samruddhi Agrawal

Kalyan Guha

Jayesh Pipalwa

Subscribe Now

laying down of road expenses

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

CA Final

GST CONSULTANT

GST CONSULTANCY

Accountant

Manager- Finance and Compliance