Whether capital expenditure ?

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.

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
	connection charges and modem charges should be capitalised and recharge or usage charges should be charged to revenue

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