It is a revenue expenditure
Dear V V Prasad,
In CS Scanner give that it is Capital Expenditure and i also thought that is is nature of capital because it is for cancilation of capital nature contract.
But i want to know that its treatement????
Its purely Revenue expenditure. You have to expense it the year it incurred.
Being Rs 60,000 is a significant figure, it should be considered as Extra ORdinary Expenses for Comparison purposes as well.
the nature of the transaction for which payment is made is not significant always. The main criteria is whether such payment results in a benefit or asset which generates futur revenue more than an year or so. Since this payment does not result in any kind of asset or benefit in future. Hence its a revenue expenditure.
| Originally posted by : Nithin Chettoor | ||
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the nature of the transaction for which payment is made is not significant always. The main criteria is whether such payment results in a benefit or asset which generates futur revenue more than an year or so. Since this payment does not result in any kind of asset or benefit in future. Hence its a revenue expenditure. |
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agree
it is a revenue expenditure my dear
as this transaction do not result in increase in assets or reduction of liab.(conditions for the capital expenditure)...... therefore revenur expenditure.
Revenue expenditure
agree with Mr nitin...
CAclubindia
