Whether broadband connection charges (data card) should be capitalized or it will be treated as revenue expenditure, if broadband is used by the company for official purposes.
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Whether capital expenditure ?
Replies (24)
Just like Telephone expenses it is to be treated as a revenue expenditure... I just confirmed this with a senior... fully debited to P & L A/C...
revenue expenditure.
materiality matters..and not just nature of expense!
Revenue expenditure.
thanks to all
connection charges and modem charges should be capitalised and recharge or usage charges should be charged to revenue
revenue exp
agree with mr. rajnikant . connection charges and modem charges should be capitalised and recharge or usage charges should be charged to revenue
revenue exp
as datacard has no market value in absence of connection, so its revenue expenditure.
Monthly charges should be revenue exp and modem exp exceeding rs. 5000 should be capitilized otherwise. . . . .
according to schedule VI and AS-6 assets less than Rs 5000/- should be debited to p&l Account so if the expenditure is less than 5000 it will be treated as a revenue expenditure
| Originally posted by : Rajnikant Vadigoppula | ||
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connection charges and modem charges should be capitalised and recharge or usage charges should be charged to revenue |
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AGREED
It depends on the cost of the modem if it is less then Rs 5000 you may charge it to Revenue A/c else it is a capital exp.
Revenue charges misc
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