Is repair of gyser capitalized or not. Plz suggest.
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Quick Summary
This discussion clarifies whether the repair of a gyser should be capitalised or treated as revenue expenditure. Generally, repairs that maintain an asset's working condition without adding new value should be expensed in the Profit and Loss Account. Capitalising repairs might affect your ability to claim Input Tax Credit (ITC), potentially limiting you to claiming depreciation instead.
Repairs are expenses incurred to maintain the working condition of the asset or to restore to its previous working condition, thereby adding no value over and above the asset's original utility. hence, repairs should be expensed in Profit and Loss A/c.