HI,
whether interest paid on loan taken for "purchase of land",
which is held as "stock in trade" will be capitalized to the value of stock or not?
Menu
Accounts
Replies (1)
No, only in case of qualifying asset which takes substantial period of time to gets itself ready for it's intended use, the interest during this period is capitalised as per AS-16. So in ur case interest will be treated as revenue expenditure which can be claimed from business income & cannot be added to stock valuation as inventories (stock-in-trade) is not a qualifying asset at all.
Recent Topics :
- Would you use a free, open-source alternative to s
- Business & Finance
- Report in GSTR 1 ( Credit Note ) for Wrong GST Rat
- Reply of summons issued under section 70 of the cg
- How to Bulk GSTIN Number Verify and Validation
- OPC Annual Filing Defaults – Need Guidance t
- OPC Annual Filing Defaults – Need Guidance t
- FCGPR of a past period
- Discuss and Download CA Final Question Paper Nov 2
- Does Parag gupta's booster batch good for CA Inter
Related Topics :
CAclubindia
