treatment of expenditure as per companies act
This query is : Resolved
01 April 2008
As per Income tax act any expenditure in excess of Rs.5000 should be capitalised. If it is spent on the assets it will be treated as fixed asset and should be considered for calculating depreciation as per sec.32. but what is treshhold limit under the companies act 1956.
Sanjeev Kumar Sharma
(Expert)
01 April 2008
there is no treshhold limit under companies act and u r confusing with expenditure more than 5000 will be capitalised, for depreciation purpose in income tax act, u/s 32 if addition in assets value is upto rs. 5000 then 100% dep. u can charges.
CA Praveen Chopra
(Expert)
01 April 2008
Even there is no threshold limit under the income tax act for capitalising any amount.
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