Dear all,
I want to know the accounting treatment for stamp paper charges paid for entering into a loan agreement (for a significant amount). Whether this cost needs to be charged off or can be amortised over the period of loan. Please also specify the relevant literature.
Thanks,
Mukesh
If the stamp duty charges paid on loan agreement is not material, charges can be debited to rates and taxes or else if it is material, you can amortise for such repayment period.
debit to rent & taxes
CAclubindia
