treatment of insurance on new car
This query is : Resolved
14 June 2008
what is the tratment of insurance on a new car purchased during the year?
whether the same is to be capitalised or treated as revenue exp.
if to be capitalised then plase state reason?
gaurav jain
whether the same is to be capitalised or treated as revenue exp.
if to be capitalised then plase state reason?
gaurav jain
14 June 2008
hi guarav
any expenses paid at the time of purchase of car the same has to be capitalised. insurance , taxes etc paid at the time of purchase has to be capitalised. As per AS - 10 : Accounting for Fixed Assets issued bi ICAI any expense incurred to bring the assets to its present location has to be capitalised
any expenses paid at the time of purchase of car the same has to be capitalised. insurance , taxes etc paid at the time of purchase has to be capitalised. As per AS - 10 : Accounting for Fixed Assets issued bi ICAI any expense incurred to bring the assets to its present location has to be capitalised
14 June 2008
As per AS - 10, any expenses incurred at the time of purchasing the assets should be capitilised.
Hence Ins., RTA, Fitness, extra fitting, should be capitalised
Hence Ins., RTA, Fitness, extra fitting, should be capitalised
14 June 2008
but insurance is a exp. which we have to bear each year
so its in nature of revene
so its in nature of revene
16 June 2008
Only for first year it should be capitalised..from second year it can charged to p& l a/c
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
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- RATE AND HSN CODE
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- Portuguese Civil Code IT Return
- LIC maturity claim whether taxable
- Can we choose not to report losses in ITR3 if they cannot be carried forward?
- EMI ISSUE IN HOUSING LOAN OLD REGIME
- TDS AND ITR ISSUE
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
