Pending capital advance received and paid
This query is : Resolved
28 December 2011
sir / madam
please tell me the treatment of capital advance paid and received in case of purchase of fixed assets in tax and accouts.
please tell me the treatment of capital advance paid and received in case of purchase of fixed assets in tax and accouts.
28 December 2011
The advance paid will reflect in the balance sheet under the head loans and advances.
Depreciation will not be allowed on such advance.
In the year in which the asset is actually received, advance will be adjusted at the time of final payment.
In that year depreciation will be allowed on the total cost of the asset.
Advance received shall be reflected as advance in the Balance Sheet.
It will be treated as income in the year in which you deliver the asset.
Depreciation will not be allowed on such advance.
In the year in which the asset is actually received, advance will be adjusted at the time of final payment.
In that year depreciation will be allowed on the total cost of the asset.
Advance received shall be reflected as advance in the Balance Sheet.
It will be treated as income in the year in which you deliver the asset.
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
- TDS applicability in case of software payments to a foreign company
- Registration of Articleship
- Procedure to surrender export incentive
- Reverse charge on commercial property
- Capital gains -1
- Slight spelling change in PAN Surname
- Audit report for a private limted company ( small company) FY 2024-25
- Fixed Deposit through NRO Account
- Income Tax Slab Rate and 87A Rebate
- INCOME TAX SAVINGS PLAN FOR NEW REGIME FY 2025-26 (MAN/WOMAN)
- Residential Status of Assessee
- TDS ON OTA Commission
- First Auditor was not appointed till 9 months
- Filing of forms on MCA portal for allotment of shares for a new company
- RCM Reconciliation Excel Sheets Format
- Goodwill realeted
- Revision under Section 264 in The Income Tax Act, 1961
- Trial balance matching
- Drafting Grounds of Appeal under Service Tax
- TDS on Crypto section 194S
Trending Online Classes
-
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
Industry Expert17 May 2025
CAclubindia
