dear sir,
we have procured imported machinery of Rs5 crores in fy 2011-12.
we have paid to supplier thru Foreign Letter of Credit which latter convert into Buyers credit for 3 years (6 months x 6 times).
after every six month we have to pay commission on buyers credit roll over.
the machine is put to use in fy 2011-12,
we have paid Rs27 lacs as commission in fy 2012-13.
can we capitalised this Rs27 lacs in fy 2012-13?
kindly guide on this.
CAclubindia
