If it is a recently purchased or newly constructed add the painting expense to the cost of the building (capital expenditure) otherwise it is a revenue expenditure

Deepak Mittal

Partner

35 Points Posted on 12 February 2016

Those expenditure which are essential of revenue nature are treated as capital nature when they are incurred for creating an assests. For e.g... Material and labour charges incurred for construction of building Legal charges for aquiring assets etc.

Neeraj Sharma

Accountant

194 Points Posted on 12 February 2016

It should be treated as revenue expenditure as repair & mainenance . but when painting charges incurred during construction of building then it will covered under capital expenditure.

Priya Gupta

CA Job

28 Points Posted on 12 February 2016

I think it should be deffered revemue expendinture considering the quality of paints available in the market provides nt incurred at the time of renovation n new construsion

Ashish Gupta

26 Points Posted on 12 February 2016

In my view, the painting expenses incurred on building a revenue expenses as it for proper maintenance of building and it does not increase the value of building or provide any further gain/profit from earlier. It is done to maintain the rent( profit) coz old building, it doesn't provide any additional return.

sanjeev kumar

79 Points Posted on 13 February 2016

some times it may increase the earning capacity of the building then how should we treat that!!!

Rahul Verma

CA-Final

320 Points Posted on 13 February 2016

Hey Dear

As per my understanding:-

Firstly i would like to clearify that Deffered Revenue Expenditur is now not apply becasue that has been withdrawn.

Secondly if painting is in ragularly done on yearly then it should be debited to Repair & Maintaince Building A/c.

Thirdly if painting is done at the time of errection of building then it should be debited in the cost of building as capiatal Expenditure.

Kindly correct me if i m wrong.

sanjeev kumar

79 Points Posted on 13 February 2016

let me clear that if we construct a building on 01/01/2016.and painted it.then total expenditure on that new building is should b capitalised(capital exp).

after 2 yrs if we want to lease or letout for commercial pupose for some period (may5yrs).and again painted it to earn high value(renatls) then how that exp will b treated ??