Guard dog accounting

We are planning to purchase a guard dog for our warehouse. I wanted to know how it will be treated in the books. Will it be an allowed expense? Also can we claim ITC on it. And how will the expenses incurred on the dog like insurance, vet, food etc. be treated. And can ITC on those expenses be claimed?

 

Note that the dog will be exclusively used for protection of the warehouse, and not for personal use.

Replies (3)
Quick Summary
This discussion clarifies the accounting treatment for a warehouse guard dog. The purchase of the dog is considered a capital expenditure and can be capitalised. Running expenses like food, insurance, and vet bills are deductible. However, input tax credit (ITC) cannot be claimed on either the purchase of the dog or its associated expenses.

The expenses incurred on the dog, such as food, insurance, and veterinary care, are also considered deductible expenses. However, input tax credit (ITC) cannot be claimed on these expenses.

Thanks for clarifying. And for the purchase of the dog, will it be a revenue expenditure or capital expenditure? Can i capitalise the dog?

Originally posted by : CA Aman Rajput
The expenses incurred on the dog, such as food, insurance, and veterinary care, are also considered deductible expenses. However, input tax credit (ITC) cannot be claimed on these expenses.

Thanks for clarifying. And for the purchase of the dog, will it be a revenue expenditure or capital expenditure? Can i capitalise the dog?

Read more at: https://www.caclubindia.com/forum/details.asp?quote=2353600&mod_id=603533&offset=1#reply

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