Expenditure on purchase of i pad whether capital or revenue

Indian Accounting Standards 938 views 4 replies

Dear all,

Kindly suggest  your expert advice on whether  i PAD distributed to directors considered as revenue expenditure.

If yes kindly give some valid reason for it.

 

Replies (4)

Revenue nature expense as it is in no way linked directly for increasing the productivity of company. I PAD is merely a like communication device which is given to directors. 

Your case is purely a judgemental issue and you can have an accounting policy stating that all assets below USD 2000 will be considered as revenue expense or vice versa.

Dear sachin,

I appreciate your reply, but if my contention about purchase of I PAD would be for unproductive use for organisation , i think its not a valid reason. 

Refer section 37(1) of income tax Act !! and analyzed based upon your purpose..

* analyse


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