Rent paid in Abroad for Machinery used in India

My Opinion in ur case

See frnd this case can be like that

A hired a m/c & upto 50% capacity it is $14000 rent. If futher Inc in production than it rent will be increased

In such a case $14000 will be capitalised  & excess paid ll be treated as Royalti Paid which shd b debited from P & L A/c.   

Here u ll be ignoring proviso of AS 10 i.e. if any exp inc capacity of production or exp due to increased capacity shd b capitalised.. . . . .

The amount paid is in nature of Rent and you are not owner of machinery. No doubt it is a Revenue Expenditure.

Originally posted by : AMANPREET SINGH
	The amount paid is in nature of Rent and you are not owner of machinery. No doubt it is a Revenue Expenditure.

AGREED