Whether road tax & insurance on vehicles to be capitalized ?
Road tax paid for 15 yrs and insurance for first yr
Eldhose MV (Associate) (63 Points)
27 April 2019Whether road tax & insurance on vehicles to be capitalized ?
Road tax paid for 15 yrs and insurance for first yr
Rohan Gundappa
(student)
(304 Points)
Replied 28 April 2019
Nope...
Both are revenue expenditures, insurance full amount and road tax apportioned for 1 year gets debited to P&L acc.
kajol
(Executive)
(201 Points)
Replied 29 April 2019
Vehicle license and registration fees are not included in the capital acquisition cost. They are expensed costs and should be charged to ET 56510.
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
