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Labour wages capital or revenue

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article assistant
495 Points Posted on 06 May 2023
wages paid to labour for construction of new building can it be capital expenditures or revenue expenditure
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On 06 May 2023 at 11:16 Report
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GST Practitioner & Accounts
15093 Points Posted on 06 May 2023
It depends upon , Building Construction by Builder or by Company for office purpose or something else . you have to elaborate your query.
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On 06 May 2023 at 12:07
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article assistant
495 Points Posted on 06 May 2023
By company for office purpose
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On 06 May 2023 at 12:09
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GST Practitioner & Accounts
15093 Points Posted on 06 May 2023
Dear Yasir

Then you have to Capitalise such type of Labour charges in Cost of an Asset, as per IND As 16 . Also this Building will stand as an asset in Companies Balance sheet. please refer IND AS 16 . Take others opinion as well.
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On 06 May 2023 at 12:21
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ACCOUNTS MANAGER
2213 Points Posted on 06 May 2023

Yes, Agree With Prasad ji ................ 

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On 06 May 2023 at 12:31


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