Mining prospecting expense- revenue or capital??
This query is : Resolved
CA Navinkumar Mishra
(Querist)
22 September 2012
Mining prospecting expenses is revenue or capital in nature under two circumstances:
a) Prospecting is not fruitfull.
b) Prospecting is fruitfull.
a) Prospecting is not fruitfull.
b) Prospecting is fruitfull.
CA. Vikash Dwivedi
(Expert)
22 September 2012
Not sure, just sharing my views so that you can think from that point of view.
i would co-relate mining prospect with R&D kind of expense. where you carry out some research on feasiblyt of product and this research cost is Expnsed off whether fruitfull or not (AS-26 Intangible assets) Development cost is amortised over a period of time.
lets wait for some more replies.
i would co-relate mining prospect with R&D kind of expense. where you carry out some research on feasiblyt of product and this research cost is Expnsed off whether fruitfull or not (AS-26 Intangible assets) Development cost is amortised over a period of time.
lets wait for some more replies.
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CA Navinkumar Mishra
(Querist)
22 September 2012
Sir i want answer from tax point of view for deduction purpose.
CA. Vikash Dwivedi
(Expert)
22 September 2012
its been long time hard to remember yet i can recall section 35 in income tax deals with Resrch & Dev exp.
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