Relocation expenses on major expansion

Yes it can be capitalised 

Originally posted by : Nitin Bhuta
	Yes it can be capitalised

Can you provide basis for it.

Because para 20 of IndAS states relocation expenses cannot be capitalised

Normal relocation expenses can't be capitalised but these expenses need to be incurred for establishing new plant thus it can capitalised as part of anciliary cost to establish new plant for carrying out business activities of the enterprise smoothly and effectively.