banner_ad

Capitalisation of water charges

1163 views 3 replies

Can one time non-refundable water charges paid to water supply board for a connection be capitalised. It is not a new plant and is operational for last 25 yrs. Just laying of new additional pipes and charges for additional water intake.

 

Please give your feedback

Replies (3)

Capitalization generally depends on the future use and value. If the additional lines help to increase productivity in future and also if the value is significant, it is better to capitalize, provided the new lines are not replacement lines.

Thanks Poornima for the reply.

Yes, the amount is significant. Water will not directly increase the productivity.

The main issue as I assume is of ownership. The ownership of connection normally will be with water supply board. Can the capitalisation be questioned by auditors. Even I am in favour of capitalisation. 

Could you please give clarification on ownership aspect

It is paid to water supply board but on behalf of whom? You would be receiving receipt in your company name right? If so, it is your company's expenditure and hence I think it will be allowable


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details