Treatment of fuel and maintenance of generator used of construction of Capital Asset.
This query is : Resolved
27 September 2022
Best way to ask my question is through an example
Scenario-1 Let Abc is company which is constructing a building and it is using generator(owned by Abc) for the construction as part of using generator for construction it incurred expenses like fuel and regular maintenance,
question is should I capitalize these expenses since they are incurred for building or should I need to debit to P&L account ?
Secnario-2 what if generator is taken under operating lease ?
Scenario-1 Let Abc is company which is constructing a building and it is using generator(owned by Abc) for the construction as part of using generator for construction it incurred expenses like fuel and regular maintenance,
question is should I capitalize these expenses since they are incurred for building or should I need to debit to P&L account ?
Secnario-2 what if generator is taken under operating lease ?
28 September 2022
1 Capitalise these expenses since they are incurred for building.
2 Then also capitalise.
2 Then also capitalise.
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
- Selecting Tax Regime while for calculating tax relief on under Section89 of income tax act 1961.
- Cloud service
- Relief Calculation u/s 89 of ITax 1961 in TableA Form10E
- Sale of Gold ornaments
- Credit note Issue reg
- Accounting Policies changes
- Running non ac bus under contract with roadways
- GST ITC on Liquidated damages
- SECTION 194T
- Ca final exam registration may-26
- B2B Amendment
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- Regarding Advance Tax not claimed in the Return of Income for A.Y. 2025-26
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
- Clarification Required on GST Rate & HSN Classification – Millet-Based Probiotic Drink
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
