Bulbs changed for entire hotel to LED. can it be capitalised.

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Financial controller
21 Points Posted on 11 January 2020
Can we capitalise the cost if change of existing bulbs to cost saving LED bulbs. amount involved runs into lacs.
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On 11 January 2020 at 15:09 Report
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This discussion explores whether the cost of replacing existing hotel bulbs with energy-saving LEDs can be capitalised. The general consensus is that it's unlikely, as the benefit from bulbs is typically expected to last less than one financial year. Capitalisation of assets is usually based on expected long-term benefit rather than the amount spent.

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Tax Consultant & Practitioner
6195 Points Posted on 09 August 2020

Capitalisation of assets is not based on the sum involved.

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On 09 August 2020 at 08:17
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Tax Consultant & Practitioner
6195 Points Posted on 09 August 2020

Capitalisation of bulb is not possible since one would not expect the benifit from would b available for more than 1 financial year especially in case of hotels

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On 09 August 2020 at 08:19

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