Treatment of renovation expenses on operating lease

CA.Shailesh Pathak (Finance officer in JUVNL)   (123 Points)

19 April 2018  

our company is running its office on rented premises.(we are just paying monthy rent ) Company had made provision of Rs. 4.6 core for renovation of premises. My question is that whether this expendiure should be capitalised or be booked under R/M expenses. (why and under which head )
Rental agreement donot contain any provision regarding renovation.