RTO & INSURANCE CHARGES

Hi Deepak

Both the charges to be routed through P/L a/c and these charges don't give any benefit of enduring nature as per AS 10 "Accounting for Fixed assets"

Sir,

RTO is one time tax and we can utilise it for next 15 years. cant we transfer RTO in capital assets?

Oh... RTO can be capitalised. sorry but didnt know of its nature.

boss it is simple

expenses having long term benefits are capitalised and those which are recurring or whoose utility is less than or equal to an year shall be routed to profit and loss account.

Hi dude,

I think, RTO tax should be capitalized & Insurance Charges should be charged to P&L A/c. (subject to - Car is used for a business purpose.)

Yes first insurance premium and RTO tax should be capitalized

Why should first Premium to be capitalised? A little clarification on this will be quite helpful.