ANIL CHAUHAN (FINANCE & ACCOUNTS OFFICER) 06 April 2013
Our company is planning to lay Pipeline Project for Joining 3-4 Gas wells. Rout Survey for the same was intially done 5-6 years back and till date project could not be started due to Negative FR.
Just want to know whether this intial survey expenditures should be kept in CWIP(Capital Work in Prog) or should be charged Off. ( I tried to search in AS -10 but couldn't fint anything abt Survey Cost)
Thanks & Regards
RAVITOSH KUMAR (Executive) 06 April 2013
Dear friend, since the report was negative there was no need to capitalize it.
Now you can charge it in P& L a/c as per AS-5 fue to change in estimation as a seperate item. However, under I.T act you will not be allowed deduction of this expense now