In case of Private Ltd.Co.which was establised in 2004 & thereafter no business activities was carried out till 2010.then co.has decided to set up a Manufacturing Plant from April,2010 & onwards.
During F.Y.2010-11 the Company incurred/expended the following expenses in relation to new plant set up as under
i) Rs. 36000/-paid to Pollution Board for taking Air & water Consent in realtion to Plant & Machinery which is under installation Stage.
ii) The company has applied for TL/CC limit to SBBJ for which the Bank charged from Co.Rs.120750/-towards Upfront fees for TL sanction & disbursement,Rs20000/- towards EM charges in relation to Equitable Mortgage of Land & Buildings, Rs. 90000/-towards processing charges on CC limit& Rs. 3200/- towards Stamping cost.
iii) Rs. 28250/- paid to Civil Engineer towards fees for Valuation of Land & Buildings to be mortgaged with SBBJ.
iv) Rs.48329/- related tp Interest on SBBJ Term loan Account for the Month of March,2011.
Please let me know the correct treatment of said expenses in relation to New project set up.
CAclubindia
