Whether road tax and insurance payment to be capitalised or expensed when vehicle is newly acquired by the company ?
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| Originally posted by : Robin | ||
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Whether road tax and insurance payment to be capitalised or expensed when vehicle is newly acquired by the company ? |
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Both should be capitalized
Hi Robin
All expenses incurred on asset still the time the asset is ready for use , need to be captialized. but note that all refundable taxes that is which we can claim from the government need to be included in the recognization.
In the given case, both the expenses need to be captialized ,
Best Regards
Nirmala
Yes. It has to be capitalised.
For any New Capital Assets purchased by the company initially incurred any recurring expenditure incurred it should be capitalised.
For any New Capital Assets purchased by the company initially incurred any revenue expenditure,it should be capitalised.
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