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(Guest)

Treatment of lifetime road tax (capital or revenue)

WHETHER LIFETIME ROAD TAX PAID FOR A VEHICLE IS A CAPITAL EXPENDITURE OR REVENUE EXPENDITURE?



 4 Replies

CA ADITYA SHARMA

CA ADITYA SHARMA (CA IN PRACTICE )     13 June 2011

it should be treated as capital expenditure                   

1 Like
Rajnikant Vadigoppula

Rajnikant Vadigoppula (CA, CS And CMA Final)     13 June 2011

yes it should be treated as capital expenditure and added to cost of acquisition

1 Like
U S Sharma

U S Sharma (glidor@gmail.com)     13 June 2011

There is limitation of such expenditure, viz for two wheelers, its 15 yrs, for 4 wheelers its 5 years, and its added to cost of vehicle at the time of purchase of vehicle, any amount paid at the time of purchase of vehicle is capitalized automatically

 

there is nothing like lifetime, at the end of tennure of 5/15 yrs such regustration is renewed, and such expenses should be treated as revenue expenditure, as its not transferable and no resale value in absence of vehicle. 

2 Like
Vani Ananthalakshmi

Vani Ananthalakshmi   04 January 2018

Can some one Plz explain with an Example.

 


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