Capitalize or Not???

yes it should be capitalized and tds should also be deducted on contract payment

Originally posted by : future ca
	yes it should be capitalized and tds should also be deducted on contract payment

AGREED.

Originally posted by : future ca
	yes it should be capitalized and tds should also be deducted on contract payment

future ca is right

yes agree with all above experts

yes it should be capitalize because its like capital expenditure which has increases the life in this case of floor...hence it sould be capitalize..

Strictly speaking it is not capitalised  as per AS-6 and Guidence notes

1.Just for fixing the rubber MAT not increseing the life total building even though increseing the life of floor

2.Once building is capitalised after that any expenditure incurred it is charged to revenue except major modification And expansion so just like fixing the rubber mat it is not considered major modification

3 we know materiality concept so quantum of value is not considered nature of expenditure is considered

Originally posted by : lakshmikanth
	Strictly speaking it is not capitalised  as per AS-6 and Guidence notes 1.Just for fixing the rubber MAT not increseing the life total building even though increseing the life of floor 2.Once building is capitalised after that any expenditure incurred it is charged to revenue except major modification And expansion so just like fixing the rubber mat it is not considered major modification 3 we know materiality concept so quantum of value is not considered nature of expenditure is considered

 Agreed.

It is a revenue expenditure and should be charged to "Reapair & Maintenance Head"

Originally posted by : Malika Sharma
	yes it should be capitalize because its like capital expenditure which has increases the life in this case of floor...hence it sould be capitalize..

 Malika in that case if we use Special kind of paint and company said it increase the life of the walls, then as an  auditor what you will do?

The thing which we have to consider is "Substantial Change in the life of the asset".

if that paint increases the life of the wall in terms of patches etct hen we capitalize it .but since its not major modification then we charged it to revenue expenditure? Does it mean this? substantial changes ?

i agree with lakhsmi kaanth. 

capitalisation is done when the life of the asset is increased than that of a previously assessed standards. had this not been done, had the building become obsolence? ofcourse, the answere is No.. on the other hand, if we do this, does the life of the building increases than the previously assessed standrds?? 

in the give case, making it permanently fixed with a solution and the amount incurred is immaterial for the purpose of capitalisation. hence, in my opinion it should not be capitalised..

DEAR ALL,

NOW AS I AM READING ALL THE VALUED POINT OF VIEW.....

PLEASE CONSIDER TWO SITUTIONS GIVEN BELOW

1) RUBBERMAT BEING LAID WHILE THE CONSTRUCTIONS OF BUILDING IS GOING ON

2) RUBBERMAT LAID AFTERWARDS COMPLETION OR BUILDING IN USE

ACCORDING TO ME IN FIRST INSTANCE WE WILL CAPITALISE THE SAME BUT IN 2ND INSTANT WE WILL NOT CAPITALIZE THE AMOUNT.

nai hoga yaar capitalize.....................