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Treatment of expenditure on rain water harvest

Nagashree G (Student CA Final ) (23 Points)

25 May 2017  
Expenditure towards Rainwater harvest is Revenue or Capital expenditure?

 3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (108281 Points)
Replied 30 May 2017

Being long term investment should be treated as capital expenditure.

genexutility (water purification) (2 Points)
Replied 20 October 2021

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yasaswi gomes (My grammar is 💯 good I)   (6636 Points)
Replied 21 October 2021

If your planning to sell it, it is capital expenditure. 

If you intend to use it for treating it for factory purposes as drinking water, gardening, it is revenue expenditure.

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