Leased line expenses
K Ramakrishna Rao (Asstt audit officer) (40 Points)
15 January 2019
can leased line expenses of a software co. be debited to p&l a/c. Isn't it a capital expenditure
K Ramakrishna Rao (Asstt audit officer) (40 Points)
15 January 2019
CA. Kuna Mohanty
(Sr. Manager (Finance) MMTC Limited )
(55 Points)
Replied 15 January 2019
Lease rental is purely revenue nature, if any capital assets forming part of your leased line expenses and the service life of the that assets is more than a year need to be capitalized subject to your monetary threshold fixed by your organization for capitalization of the Assets.
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