Valuation of imported plant & machimary

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

kapil singhal

kapil singhal (Querist)
Follow

01 August 2013 Please provide the valuation method of imported fixed asset with reference to AS-10 and AS-11.

Kumar

Kumar (Expert)
Follow

01 August 2013 AS 11 - At exchange rate on the date of bill of lading to be precise

AS 10 - Duties whose input credit is not taken to be included in the cost of the asset

Message likes : 1 times

kapil singhal

kapil singhal (Querist)
Follow

02 August 2013 Please clarify that, whether the loss or gain from foreign exchange fluctuation is to be capitalized into the value of machinery or not?

Kumar

Kumar (Expert)
Follow

06 August 2013 Loss has to be taken to P&L for books and should be capitalised for Income tax purpose

If you have borrowed a loan in foreign currency and there is exchange gain / loss in the loan then you can capitalised it to the fixed asset which was purchased out of that loan subject to certain conditions

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now