Expense incurred on rented premises by tenant

These are capital in nature as the benefits derived from it will last many years.

I agree with Mihir

Hi Suman,

For accounting purpose and as per industry standards no one will capitalise it . It will be treated as revenu because put to gether they might give you enduring benifit but single handed they dont and keeping record of them in FAR is not possible. And it is rented premisis.  So its revenue.

As far as taxation goes, as per Sec 30 the rent of the premisis , "if the assesse has occupied the premisis as tenant and amount of repairs( not being in capital in nature) if he has undertaken to bear the cost of repairs can be claimed as deduction". so all your repairs can be taken as expense.

Thanks all! Thanks karthik, even i am also having the same views but still little confused about electrical wiring or telephone wiring/conduitings. Plz guide me specifically for these expense.

Wiring is down right expense. See where ever you go be it in office premisis or home you incur wiring for telephone and lan connection. These are set up cost you incur irrespective of premisis. That is if you change the premisis again you have to again incur the expenditure for the new premisis, Big companies dont even bother capitalising wiring and lan and electricity modification even if they own the building. 

But electricity expense if it includes your depositing amount with electricity company for AEH lines then that you should not expense. 

If i am not wrong once you clear out the premisis you cannot take wiring with you. It is the additional cost which you have to incur again if you move into new premisis to make it into workable condition. So wiring is a down right expense. But conduting i dont know why you are incurring conduiting expense for rented premisis. Conduting and RCC etc will be done by the builder itself. But if your rent agreement suggest that you incur the expense and the owner of building is not going to refund such amount on you leaving the premisis then expense it otherwise do not. 

Main assumption on which my suggestion is based on is that even though benifit of conduiting and RCC for a substantial period , you as a tenant derive it only till the time you stay there, Where as the owner of the building is the one who derives enduring benifit of it and not you. Kindly expense if the amount is not refundable and you are occupying the premisis as a tenant.

For renovation of office i.e expense of panelling walls, installing book case and safe etc kindly go through "JK industries Vs CIT" case law

Replacement of electricity meters- Reliance Infrastructure Ltd vs CIT 2011

Expenditure on renovation of premisis taken on lease would be allowable - B&A platation industries vs CIT 2000, CIT Vs Kisenchand chellaram 1981, CIT vs Bharat commercial corporation

Expenditure by way of interior decoration with wall papers , partition walls, marble flooring provided in premisis is in the nature of business expenditure for proper carrying on of business therefore deductible - B&A Plantation Industries LTD Vs CIT 2001

Thanks again!!! Sir, we can take this stand for civil work done on rented premise and as you written above for electrical wiring also, my thoughts are very much similar to you, but you have not specifically mentioned anything about furniture & fixtures, are your view same for this too?

"3) Furniture work, some are detachable & some are not.( i.e. counters, almirah, undetachable tables etc.) Shera board partition or Aluminium partition or Glass partition done at rented premise"

Whether the expenses are revenue or capital in nature?

and what if these furniture or partition is having good resale value after detachment??

Thanks & Kind Regards