Dear expert, a company has paid die development charges (for die) to its job worker. the company has no control on such asset. if contract between job worker and company breaks, job worker is not entiteled to return the die. so my question is that, what would be the treatment of such die in the books of company. should it be capitalised or not. kindly help
Menu
Treatment of asset
Replies (1)
I think you can apply the concept i.e factor to be considered while applying any A/cing policy: 'substance over form' to this issue.
As per the concept: Fact prevail over law.
So as per the agreement since J/W not entitled to return the asset, it won't be capitalised in the books.
Recent Topics :
- Clarification on September 2026 PF Calculation for
- DRC-03 interest paid under CGST/SGST instead of IG
- GSTR1 amendment Bulk bills
- Capital Gain on Sale of Gold
- GST SALES RETURN MISSING 2025-26 FY
- Enquiry on FAST-DS system generated email
- Capital gain on sale of agriculture land
- Demand from TRACES
- FY 2025-26 ITC CLAIM DUE DATE
- 96084000 and 48202000 HSN code ka Tax Rate kya hai
Related Topics :
CAclubindia
