Dear All
My company has received a crane from my parent company to use it at port to perform the business of my company.The asset supplied by the parent company is at free of cost.However we had incured Rs.3750000/- towards customs duty,freight etc.As per the terms of the delivery by parent compnay it has mentioned that the possession of the crane should be handed back to parent company upon their request.
The crane we are expecting to use atleast for 5 years.
Now my question is how should I treat this transaction in my book.Can I recoganise the entire value of f crane in my book and provide depreciation or I should account the expenses of Rs 3750000/- as deferred expenses under assets and write it off within a span of period?
Thanks & Regards
Azeez
CAclubindia
