How should the asset classified in hotel industry & where does Sanitation & plumbing work be classified under Fixed asset head ?
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Asset capitalisation of a hotel
Replies (4)
It is same way like other business classified their assets. Cosy incurred for setting sanitary & pipes considered as a fixed assets. Cost incurred to maitain efficiency will not be regarded as a fixed assets.
| Originally posted by : CA PRIYUL SHAH | ||
 |
It is same way like other business classified their assets. Cosy incurred for setting sanitary & pipes considered as a fixed assets. Cost incurred to maitain efficiency will not be regarded as a fixed assets. |  |
Thnaks for your answer sir, but under which sub fixed asset should the sanitary and plumbing work needs to classified like fixation of tabs, pipelines, showers etc.? is it building or plant & machinery or fixtures?
| Originally posted by : CA PRIYUL SHAH | ||
|
It is same way like other business classified their assets. Cosy incurred for setting sanitary & pipes considered as a fixed assets. Cost incurred to maitain efficiency will not be regarded as a fixed assets. | |
Thnaks for your answer sir, but under which sub fixed asset should the sanitary and plumbing work needs to classified like fixation of tabs, pipelines, showers etc.? is it building or plant & machinery or fixtures?
In case Taj Mahal Hotel vs Commissioner Of Income-Tax. on 1 August, 1967 it was held that Sanitary & pipes considered as Plant & Machinery...
So It covered under Plant & Machinery, Eligible for 15% depreciation
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