Taxes on asset acquistion
This query is : Open
03 January 2017
A company has made a capital expenditure. For this they had to bear withholding taxes and also pay service tax under reverse charge. Since the original capital exp is recognised as asset would the withholding taxes and service tax paid be added as to cost for acquisition of asset and capitalised?
03 January 2017
If the taxes are non-refundable it needs to be added to the cost of asset.
Ref : IAS 16 para 16(a) Elements of cost - Its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.
Ref : IAS 16 para 16(a) Elements of cost - Its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.
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