Interest paid on an amount borrowed to acquire a plant for business use upto
the date on which the plant is put to use.
Menu
It is capital expenditure or revenue expenditure
Replies (3)
It's a capital expenditure and should be capitalized with the cost of plant
As per proviso of sec. 36(1)(iii) of the Income tax Act, Interest attributable to borrowed amount up to the date on which the plant is put to use shall be part of cost of Plant and depreciation accordingly will be claimed.
Yes, it is treated as capital expenditure and asset cost will go up by that interest amount.
Recent Topics :
- Police Bandobost and GST Invoice
- Understanding where manual effort goes in audit wo
- Scanned purchase bills to Tally XML with GST check
- TDS applicability of foreign remittance to Oracle
- GSTR 9 LATE FEE
- Best Online Mock Test Series for CA Inter January
- COST OF IMPROVEMENT
- Pillows and Mattresses
- GST Applicability for Reg. / Un-Reg. Indian custom
- Amended GST Act & Rules
Related Topics :
CAclubindia
