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It is capital expenditure or revenue expenditure

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6 Points Posted on 26 October 2019
Interest paid on an amount borrowed to acquire a plant for business use upto
the date on which the plant is put to use.
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On 26 October 2019 at 21:03 Report
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12244 Points Posted on 26 October 2019
It's a capital expenditure and should be capitalized with the cost of plant
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On 26 October 2019 at 23:48
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16 Points Posted on 27 October 2019
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.
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On 27 October 2019 at 00:30
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17264 Points Posted on 27 October 2019
Yes, it is treated as capital expenditure and asset cost will go up by that interest amount.
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On 27 October 2019 at 14:50


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