Vehicle Insurance capitalized or not ?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 November 2010
Hi,
My Query is:
Assessee has purchased vehicle during the year. The invoice is inclusive of insurance cost for the initial year.
(a) Whether the same is to be capitalized along with the vehicle or to be expensed off? If to be capitalized what about prepaid?
(b) Whether the treatment will be different if the same is not included in the invoice but taken separately before the vehicle is put to use?
I am aware that subsequent year insurance premium paid for the FA is to be expensed off.
Kindly clarify asap.
Thanks in advance
My Query is:
Assessee has purchased vehicle during the year. The invoice is inclusive of insurance cost for the initial year.
(a) Whether the same is to be capitalized along with the vehicle or to be expensed off? If to be capitalized what about prepaid?
(b) Whether the treatment will be different if the same is not included in the invoice but taken separately before the vehicle is put to use?
I am aware that subsequent year insurance premium paid for the FA is to be expensed off.
Kindly clarify asap.
Thanks in advance
24 November 2010
first time insurance would be capitalized since its included in bill of vehicle....after that expenses wold be treated as revenue expenses
24 November 2010
All exps at the time of purchase of car to be capitlized.
after capitlized no need to prepaid exps.of insurance. be cause its capitlized. not exps.
after capitlized no need to prepaid exps.of insurance. be cause its capitlized. not exps.
24 November 2010
Agreed
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
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
