Treatment of advance paid to capital goods vendor

Dear Experts

Could anyone gude me on the following query

What is the accounting treatment of sums paid to foreign capital goods vendor under milestone payments method for supply of certain capital goods?. Since the transaction has taken place long time, the same has been accounted in advance at the time of remttence. Can it be treated as work in progress now or still to be kept under capital advance? 

Could you please clarify asap.

Thanks in advance

Best regards..Jagadeesh

Replies (4)

It will remain in Capital Advance only and rquired to presented seperately from CWIP.

Thanks

Thanks you Mr Sandeep.

Can you please forward if any supporting docs /case laws available in this regard.

Best regard..Jagadeesh 

please refer revised schedule VI and guidance note on the same.

Thanks

Thank You Mr Sandeep

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details