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Tax treatment for name boards

Tax queries 2041 views 4 replies

Cost incurred for Co/s name board-Is it revenue exp? 

 

Pl respond.

Replies (4)
It is revenue exp, as it wil be not used for the purpose of producing or providing goods & services,to capitalise any exp this is one of the important criteria.

It is a Capital asset and can take depreciation under factory building considering it as a part of factory. Mostly we take it as capital asset after considering the cost of the Name Board. And the name board is mandatory for a factory & business premises as per Law. So we capitalised it.

Sir, Can u clarify it in a techinical terms ?

Sir if the cost is 1lakh rupees then will it a revenue or a capital expenditure?  


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