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Accounting for petrol pump

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Atharv Sankliya

1359 Points Posted on 04 October 2022

in petrol pump warning, hazards sign board are recorded as ?

Replies (2)

Quick Summary

This discussion explores the accounting treatment for warning and hazard signs at petrol pumps. The consensus is that these signs are expensed rather than treated as fixed assets, as they do not directly benefit the business. The case of CIT vs. Orient Ceramics and Industries Ltd (2013) is cited as a precedent for this treatment.

Kev Men

790 Points Posted on 07 October 2022

It will be expensed. It will not be considered as fixed assets because it does not bring any benefit to the assessee. You can read the case of CIT vs. Orient Ceramics and Industries Ltd (2013).