Chartered Accountant
6971 Points
Joined September 2007
You will really have to clasify whether that expenditure is capital in nature or revenue in nature.
To justify that it is capital in nature you will have to see if the following attributes are present.
a) You are the owner of the asset
b) The expenditure will yield some benefits for more than 1 year
c) It increases the capacity of the asset.
In case any of the above attribute is not applicable, then you cannot capitalise. Otherwise you can take it as expenditure