Dear all
We in the process of expanding our production capacity by 40% by installing new plant and machinery to the existing. During this process we have recuited significant number of employees for training and on job work. Can we capitalize the the salaries indurred during the capitalization period? If so under what clause or specific reference with Accounting Standard.
Thanks,
Lakshmana Rao
Hi,
Yes you have to capitalize labour cost. This is with reference to AS 10 & Sec 36 of Income Tax Act as well.
Thanks
Harpreet Singh
Trainning cost will not be capitalised as per borrowing cost INDAS 16
RMA And Associates LLP
New Delhi
CA Inter
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CCI
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