Capital or revenue exp

425 views
User Avatar

ca final
1422 Points Posted on 21 January 2020

we have purchased a dg set of rs 50 lakhs which is a part of big machine. this dg set can be used only with the machine and not without the machine, its a part of machine.

whether it will be capital expenditure or revenue expenditure. kindly share supreme court judgement, if any.

0 Reply Share Follow
On 21 January 2020 at 16:20 Report
Replies (3)
Quick Summary
This discussion clarifies whether a DG set purchased for Rs 50 lakhs, which is integral to a larger machine and cannot function independently, should be treated as capital or revenue expenditure. The consensus is that the DG set is a capital asset, falling under fixed assets (Plant & Machinery), and therefore qualifies for annual depreciation claims.

User Avatar

"Do the Right Thing...!!!"
77792 Points Posted on 21 January 2020
The DG set is a capital nature...
Reply
On 21 January 2020 at 17:33
User Avatar

10683 Points Posted on 22 January 2020
DG set itself is a machine (fixed assets) under Plant & Machinery.

It's a capital expenditure and on which you are entitled to claim depreciation every year.
Reply
On 22 January 2020 at 23:44
User Avatar

Profession
19974 Points Posted on 27 January 2020
DG IS A capital asset .
It should be booked under Fixed Asset.
To get a more concise idea refer
Schedule 111 OF COMPANIES ACT.
Reply
On 27 January 2020 at 06:50

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. GST Input Tax Credit (ITC) on Camera Purchase &amp
  2. What makes CA Himanshu Singla different from other
  3. TAX TREATMENT AND ACCOUNTING ENTRIEOF PERQUISITES
  4. Gifting money to my father-in-law (my husband's da
  5. GSTR-1 JSON from marketplace exports (Myntra / Ama
  6. Question on buy back of shares
  7. Saving corporate tax completely on profit from rea
  8. Hi experts need some helps
  9. A query regarding GST and Place of Supply:
  10. ADT-3 not filed by previous Auditor

More recent discussions | Post

Related Topics :

Loading

Latest Job Openings

View all
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
19 August 2026
PAID ARTCILE ASSISTANT

My Legal Tax Consultants Pvt. Ltd.

Noida

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details