M/C Component to be Capitalised or Revenue
This query is : Resolved
20 January 2010
Sir, suppose there is a M/C having Cost of Rs 10,00,000 in which a component (component has life of 3-4 yrs) having value of Rs 2,00,000 gets damaged and is replaced by another component of the same quality costing Rs 2,50,000(Increase in price from 2,00,000 to 2,50,00 owing to External factors like Inflation, Demand Supply factors etc.). The estimated life of the new component is the same as that of the old one,i.e., 3-4 yrs. So will the Expenditure on new component be treated as a Revenue Expenditure or Capital Expenditure????
21 January 2010
it should be treated as a revenue expenditure as the same is not increasing any productivity of the machine.
WITH REGARDS,
C.A.NISHIT DOSHI
WITH REGARDS,
C.A.NISHIT DOSHI
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
- CG Tax On residential property
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Under construction property in ITR
- Pass word to open justification report for Q1 for FY 2026-27
- Gift of mutual fund units to daughter
- PPF interest-As Exempt Income disclosure
- Upload Level ValidationITR3Category of Defect B/D
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Not able to file ITR
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- 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
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
