My client is involved in constructing a mega project under the PSI 2007.
They have hired a consultant to acquire few eligibility certificates under the Industrial promotion subsidy scheme (IPS)
Accordingly following are the certificates to be obtained. if the consultation fees is based on each type of certificate to be availed, what amount will be capitalized in the cost of project and what amount will be expensed out.
1. Obtaining approval for Mega Project from Government.
2. Obtaining eligibility certificate for government for IPS
3. Obtaining eligibility certificate for claiming exemption for payment of electricity duty. (Under the IPS scheme, electrcity duty is exempt for 9 years from the date of commencement of production.
4. Obtaining eligibility certificate for claiming exemtion of sales tax liability arising on sale of finished product after commencement of production for a period of 9 years.
Please clarify what amount will be capitalized or whether the all the consultation fees should be capitalized.
Regards
Arihant
CAclubindia
