Our co. has taken a land on lease for 12 years. Co. has incurred Rs. 5 lakhs approx on the filling of land and other land improvement cost. Apart from the above monthly lease rent of Rs. 30000/- is also being paid by the co. What should be the treatment of above expenditure of Rs. 5 lakhs? Whether this should be taken as fixed asset in the books of account or shall be written off over the lease period. If it is to be written off please tell that the balance portion shall be presented under which head in the balance sheet?
CAclubindia
