Hi,
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We are required to purchase machinery for our business and it has been
Will the interest payable be allowable deduction as per IT act,1961. For accounting purpose what is the treatment for interest and depreciation ? Can we claim the above exp. Note : We didnot capitalize the machinery in the books of account.
thanks in advance |
HELLO,
First U mentioned that u want to loan for purchase of machinery and again in note U mention that it is going to be purchased from propreitor's personal money. The Question in itself is ambiguous.
And why U not capitalised machinery even if it has been purchased from proprietor's personal money. It would have the effect of increasing Capital along with Machinery.
CAclubindia
