interest on borrowed loan

1229 views 5 replies
User Avatar

Going...to be C.A soon...
1624 Points Posted on 03 October 2007

respected all,

if a company borrowed loan for purchasing of a machinery and paid interest for that and interest debited to machinery account still two years back.can company shows that.or if a company borrowed loan for manufacturing of machinery than..........

thanks

Reply Share Follow
On 03 October 2007 at 10:00 Report
Replies (5)
User Avatar

Chartered Accountant
1974 Points Posted on 03 October 2007
if loan is taken for purchasing any machinery then for Income tax purpose interest upto the machinery is put to use shall be debited to machinery account and interest for rest period shall be debited to p/l account
In case of manufacturing of p/m the same provisions shall apply...
Reply
On 03 October 2007 at 10:21
User Avatar

Consultant
18525 Points Posted on 03 October 2007
Further, refer AS 16 "Borrowing cost" - How to treat Interest in the financial statements. It is very much available in our files portal.
Reply
On 03 October 2007 at 11:45
User Avatar

Going...to be C.A soon...
1624 Points Posted on 03 October 2007
please provide notes on AS-16,4 and 5 and tell me which are important AS & AAS
Reply
On 03 October 2007 at 15:36
User Avatar

Chartered Accountant
1974 Points Posted on 04 October 2007
u ll find all AS and AAS in the files section of this site....u r appearing in CA final or inter ....as important AS and AAS are different for inter and final...
Reply
On 04 October 2007 at 19:18
User Avatar

Chartered Accountant
1974 Points Posted on 04 October 2007
u ll find all AS and AAS in the files section of this site....u r appearing in CA final or inter ....as important AS and AAS are different for inter and final...
Reply
On 04 October 2007 at 19:18

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topic

More recent discussions | Post

Related Topics
Loading

Latest Job Openings

View all
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details