| Originally posted by :HARSH GOENKA | ||
| " | I AGREE WITH Mr. HEMAL & Mr. KAUSTAV EXPENDITURE ON BATTERY IS OF REVENUE NATURE IT DOESNOT ENHANCES ITS CAPACITY MOREOVER WHAT IF THE BATTERY SINKS? THEREFORE IT IS OF REVENUE NATURE |
" |
Haresh,
The test for revenue is not what has actually happened to your last battery. it is definetely capital expenditure.
Hai.,
Replacement of Battery wont increase the efficiency of the Asset but it will keep the asset at normal condition. Although you may have arguments to capitalise it will be good and wise to treat it as Revenue Expenditure.
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