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Re: construction of lab.done in the rented premises

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Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2013 Construction of Laboratory including electrical fittings is done on the rented premises and then the premises was handed back to the landlord with all the modifications, please suggest the accounting treatment.

Rupesh Jain

Rupesh Jain (Expert)

13 June 2013 pls take elelctrical fiting as fitting

and depreciate every year as machinery

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

04 July 2013 You have not done any repairs to the premises of others therefore you have to capitalise it. In other words if there was already electrical line when you took the rented premises on rent then you can treat this as revenue expense but as regards labotary you cannot charge to revenue because it has connection with your business and landlord has nothing to do with it so capitalise it

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