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capitalise interest on capital of [partners
If bilder's construction work will get over over period of 3 yrs and during this period partners are allowed interest on their capital as per income tax rules.can we include interest paid to partners as part of WIP?
Replies (3)
no you cant
Yes u can otherwise there will only expenses and no income. So it will be capitalised.
Since the construction work is not completed et and the business activity is not started all the expenses incurred should be capitalised by transferring them to Pre operative expenses and the same should be written off over the period of three years after business activity starts...
Hence, interest on capital paid should also be capitalised in this case....
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